Deemed to be let out

[anil kalia]

A is having two houses in two different cities. A is residing in one of the said house in one city where he is employed. The other house in other city is being used by his father, who is not having any other house in his own name, whether one of the said house will be treated as deemed to be let out. Although the house in which father is residing was purchased by the funds provided by father.

In my view, if father is stating the property in his return then question of deemed let out does not arise.Secondly, If the property could be said remain vacant through out the year, the gross annual value would be zero.

AI Summary

Deemed to be let out: occupancy by a relative affects tax treatment unless the occupant declares the property in return.
Whether a residential property is deemed to be let out depends on occupancy and the tax characterisation of the occupant; if a relative occupying the property declares it in his tax return, deeming as let out does not arise, whereas a property vacant throughout the year may attract a gross annual value of nil.