Home > Income Tax > House Property > Computation of Income under House Property

Computation of Income under House Property

A) Fair Rent

XXX

B) Municipal Value

XXX

C) Higher of A or B

XXX

D) Standard Rent

XXX

E)  Expected Rent (Lower of C or D)

XXX

F) Actual Rent

XXX

G)  Gross Annual Value (higher of E or F )

XXX

H) Less: Municipal Tax

XXX

I) Annual Value (G – H)

XXX

J) Standard Deduction (30% of I)

XXX

K) Interest payable on borrowed capital

XXX

L) Income from House Property (I – J – K)

XXX

Other Point

  • In case if assessee have more than one house property then first separate income (or loss) for each house property is calculated and then it is combined to get Income/Loss under House Property head.

 

About Rohit Pithisaria

Rohit Pithisaria founded TaxAdda in July 2012. He is Practicing Chartered Accountant from Jaipur and been in practice for more than 7 years. He is actively writing from very beginning of his professional career and is author of various tax articles and blogs.

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