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Income From House Property

Ravi Yadav
09/06/2017 0 0

Income form Let out house property

 

Computation Of Income From House Property:

Gross Annual Value xx

Less: Municipal Taxes paid during the year xx

Net Annual Value xx

Less: Standard Deduction @ 30% of NAV u/s 24(a) xx

Less: Interest on Loan u/s 24(b) xx

Add: Recovery of Unrealized Rent u/s 25 AA xx

Income from House Property before considering Arrears of Rent xx

Add: Arrears of Rent Received xx

Less: Deduction u/s 25B: 30% of Arrears Received xx

Net Income From House Property xx

 

Income form Self occupied property

Gross Annual Value Nil

Less: Municipal tax Nil

Net Annual Value Nil

Standard deduction Nil

Interest on borrowed capital Deductible

Income from one self-occupied house property xxxx

 

Standard Deduction u/s 24(a)

Standard deduction of 30% of NAV (Net Annual Value) shall be allowed to the assessee in respect of (i) maintenance charges, (ii) repairs, (iii) collection charges, (iv) electricity, (v) fire insurance premium, (vi)ground rent, and (vii) depreciation.

Interest on Loan u/s 24(b) On Accrual basis

 Interest on Interest: Interest on unpaid interest shall not be allowed as a deduction.

 Brokerage: Any brokerage or commission paid for acquiring the loan will not be allowed as a deduction.

 Prior Period Interest: Prior Period Interest shall be allowed in five equal installments commencing from the financial year in which the property was acquired or construction was completed.

Interest on any fresh loan taken to repay the existing loan  shall be allowed as a deduction.

In case of self oocupied property, no interest certificate flat 30000

Receipt Of Arrears Of Rent [Section 25b]

Receipt Of Arrears Of Rent [Section 25b]

A standard deduction of 30% of the amount of arrears received will be allowed as deduction.

 Of Arrears Of Ret [Section 25b]

Computation Of Gross Annual Value

1. Municipal Value xx

2. Fair Rental Value or Notional Rental Value xx

3. Higher of (1) and (2) xx

4. Standard Rent (if applicable) xx

5. Reasonable Expected Rent = Lower of Step (3) and (4) xx

6. Annual Rent (total rent assuming the property to be let out throughout the Previous Year) xx

7. Deduct: Unrealized Rent as per Rule 4 xx

8. Actual Rent= Step (6) – (7) xx

9. Higher of Reasonable Expected Rent (Step 5) & Actual Rent (Step 8) xx

10. Deduct: Vacancy Allowance (proportionately on the basis of Annual Rent in Step 6) xx

11. Gross Annual Value xx

 

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