Friends, There may be two type of properties in hand of the Income Tax assessee. One is Self-occupied Property or Second is Let-out Property. Now question is how to calculate Income from House Property. I mean to say whether Municipal Tax paid during the year can be deducted or not. Unrealized Rent can be deducted or not. Standard Deduction will be allowed or not, if allowed what is percentage of Standard Deduction. Below flow of calculation solve these questions :-
- Income from Self-occupied Property
Interest Paid/Payable on Housing Loan
a. Interest on Housing Loan (-)
Income from Self-Occupied House Property
- Income from Let-out Property
a. Annual Letable Value/Rent Received or Receivable (+)
b. Less:-Municipal Taxes Paid During the year (-)
c. Less:- Unrealized Rent (-)
d Net Annual Value (a-(b+c))
e. Less Deductions from Net Annual Value
i. Standard Deduction @ 30% of Net Annual Value (-)
ii. Interest on Housing Loan (-)
f. Income from Let-out House Property.