UNIT-3-Income-from-House-Property.pdf nh
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About This Presentation
it will be used for the calcuating
Slide Content
GURU NANAK COLLEGE [AUTONOMOUS]
AFFILITED TO UNIVERSITY OF MADRAS
RE-ACCREDITED AT “A”GRADE BY NAAC
___________________________________________________________________________________
Welcome to Online Class
Subject: “INCOME TAX LAW AND PRACTICE”
AFFILITED TO UNIVERSITY OF MADRAS
RE-ACCREDITED AT “A”GRADE BY NAAC
___________________________________________________________________________________
Welcome to Online Class
Subject: “INCOME TAX LAW AND PRACTICE”
INCOME TAX LAW & PRACTICE -I
UNIT-I: BASIC CONCEPTS
Income Tax Act 1961 & relevance of Finance Act –Definition of
important terms –Income, Person, Assessee, Assessment Year and
Previous Year –Broad features of Income
Residential status, Incidence of Tax & Basics of Charge:
Taxable entities –Classification of Residential Status of taxable
entities -Residential Status –Individual, firm, AOP, HUF and
Companies –Incidence of Tax.
EXEMPTED INCOMES: Classification of exempted incomes –Incomes
excluded from total income –Income forming part of total income
but exempted from Tax.
UNIT-II: INCOME FROM SALARIES
Different forms of salary –Provident Funds –Allowances –
Perquisites –Other items included in Salary –Qualifying amount for
deduction u/s 80(C).
UNIT-I: BASIC CONCEPTS
Income Tax Act 1961 & relevance of Finance Act –Definition of
important terms –Income, Person, Assessee, Assessment Year and
Previous Year –Broad features of Income
Residential status, Incidence of Tax & Basics of Charge:
Taxable entities –Classification of Residential Status of taxable
entities -Residential Status –Individual, firm, AOP, HUF and
Companies –Incidence of Tax.
EXEMPTED INCOMES: Classification of exempted incomes –Incomes
excluded from total income –Income forming part of total income
but exempted from Tax.
UNIT-II: INCOME FROM SALARIES
Different forms of salary –Provident Funds –Allowances –
Perquisites –Other items included in Salary –Qualifying amount for
deduction u/s 80(C).
UNIT-III: INCOME FROM HOUSE PROPERTY
Computation of Income from House Property –Let-out house –Self occupied
house –Deduction allowed from house property –Unrealized rent –Loss under the
head house property.
UNIT -IV: PROFITS AND GAINS OF BUSINESS AND PROFESSION
Introduction –Computation of profits and gains of business and profession –
Admissible deductions –Specific Disallowances –Depreciation –Loss under the
head business and profession.
UNIT-V: ADMINISTRATION OF INCOME TAX ACT
Income tax authorities –procedure for assessment –PAN (Permanent Account
Number) –Types of assessment.
PRESCRIBEDBOOKS:
Income Tax Theory, law and practice -T.S. Reddy & Dr. Y. HariPrasad Reddy –
Margham publications.
Income Tax law and practice. –V.P.Gaur&D.B.Narang .
REFERENCE BOOKS:
1.Students Guide to Income tax –Dr.VinodK.SignHania&Dr.MonicaSighania –
Taxmann.
2. Income tax service tax & VAT –Dr.GirishAhuja&Dr.Ravi Gupta –Bharat law
house.
Computation of Income from House Property –Let-out house –Self occupied
house –Deduction allowed from house property –Unrealized rent –Loss under the
head house property.
UNIT -IV: PROFITS AND GAINS OF BUSINESS AND PROFESSION
Introduction –Computation of profits and gains of business and profession –
Admissible deductions –Specific Disallowances –Depreciation –Loss under the
head business and profession.
UNIT-V: ADMINISTRATION OF INCOME TAX ACT
Income tax authorities –procedure for assessment –PAN (Permanent Account
Number) –Types of assessment.
PRESCRIBEDBOOKS:
Income Tax Theory, law and practice -T.S. Reddy & Dr. Y. HariPrasad Reddy –
Margham publications.
Income Tax law and practice. –V.P.Gaur&D.B.Narang .
REFERENCE BOOKS:
1.Students Guide to Income tax –Dr.VinodK.SignHania&Dr.MonicaSighania –
Taxmann.
2. Income tax service tax & VAT –Dr.GirishAhuja&Dr.Ravi Gupta –Bharat law
house.
HEADS OFINCOME
Incomefrom
Salary
Incomefrom
House
Property
Income
from
Businessor
Profession
Income from
CapitalGains
Income
Fromother
Sources
Incomefrom
Salary
Incomefrom
House
Property
Income
from
Businessor
Profession
Income from
CapitalGains
Income
Fromother
Sources
STATEMENT SHOWING INCOME FROM HOUSE PROPERTY
PARTICULARS LOP DLOPSOP
Gross Annual Value (GAV)XXX XXX XXX
Less:-Local Tax, Mu. Tax XXX XXX XXX
Net Annual Value (NAV) XXX XXX XXX
Less:-Specific deductionXXX XXX XXX
1.Std. dedu. (30% of NAV) XXX XXX XXX
2. Int. on Loan XXX XXX XXX
Taxable Income XXX XXX XXX
LOP –Let Out Property, DLOP –Deemed to be
Let out Property & SOP –Self occupied Property.
For SOP –NAV is always Nil
PARTICULARS LOP DLOPSOP
Gross Annual Value (GAV)XXX XXX XXX
Less:-Local Tax, Mu. Tax XXX XXX XXX
Net Annual Value (NAV) XXX XXX XXX
Less:-Specific deductionXXX XXX XXX
1.Std. dedu. (30% of NAV) XXX XXX XXX
2. Int. on Loan XXX XXX XXX
Taxable Income XXX XXX XXX
LOP –Let Out Property, DLOP –Deemed to be
Let out Property & SOP –Self occupied Property.
For SOP –NAV is always Nil
INCOME FROM HOUSE PROPERTY
Definition of the Head –Income from House Property (Sec 22)
TheIncome from houses, buildings,bungalows,
godowns etc.,istobecomputed andassessedtotax
underthehead“Income fromHouseProperty”.The
incomeundertheheadisnotbasedupontheactual
incomefromthepropertybutuponthenotionalincome
ortheannualvalueofthebuilding.
HouseProperty Income = Annual Value of Building –Deductions
specified u/s 24.
Definition of the Head –Income from House Property (Sec 22)
TheIncome from houses, buildings,bungalows,
godowns etc.,istobecomputed andassessedtotax
underthehead“Income fromHouseProperty”.The
incomeundertheheadisnotbasedupontheactual
incomefromthepropertybutuponthenotionalincome
ortheannualvalueofthebuilding.
HouseProperty Income = Annual Value of Building –Deductions
specified u/s 24.
For Income to be taxed as “Income from House Property”
the following points to be noted carefully.
1.Income from Building or Land situated in India
2.Annual Value u/s 23 (Annual Value = Annual Rental Value)
3.The Assesseeshould be the owner of the property
(Deemed owner of the Property)
a) An individual who transfer is house property to his or her spouse
or transfer to a minor child not being a married daughter
b) A member of a co-operative society to whom a building allotted
or leased under a house building scheme of the society.
c) A person who is allowed to take or retain the possession of
building
d) The holder of an impartibleestate
e) A person who acquires any rights
the following points to be noted carefully.
1.Income from Building or Land situated in India
2.Annual Value u/s 23 (Annual Value = Annual Rental Value)
3.The Assesseeshould be the owner of the property
(Deemed owner of the Property)
a) An individual who transfer is house property to his or her spouse
or transfer to a minor child not being a married daughter
b) A member of a co-operative society to whom a building allotted
or leased under a house building scheme of the society.
c) A person who is allowed to take or retain the possession of
building
d) The holder of an impartibleestate
e) A person who acquires any rights
4. It is not used for purposes of assessee’sbusiness or profession
Important Points
a) House Property held as stock in Trade
b) House Property partner used by firm
c) House property held in the name of business but actually used
for business
5. Dispute about ownership –The person who receive the rent
shall be liable to pay tax
6. House Property situated in a foreign country
ROR -Taxable, RNOR or NR –Exempted but income received in
India and payable in India –Taxable for all cases
.
Important Points
a) House Property held as stock in Trade
b) House Property partner used by firm
c) House property held in the name of business but actually used
for business
5. Dispute about ownership –The person who receive the rent
shall be liable to pay tax
6. House Property situated in a foreign country
ROR -Taxable, RNOR or NR –Exempted but income received in
India and payable in India –Taxable for all cases
.
7. Cases when rental income from Building is not treated as house
property income
a)Letting out of house property for smooth conduct of assessee’s
business/ profession.
If a person let out any property for smooth conduct of business
or profession, the rental income from such house property shall
not be treated as house property income rather it shall be
treated as income under the head Business or Profession
Example1 Quarters let out to the employee’s own business or
profession
Example2 Building let out to a bank, Post Office, Police Station,
Excise Department and Police Department etc.
property income
a)Letting out of house property for smooth conduct of assessee’s
business/ profession.
If a person let out any property for smooth conduct of business
or profession, the rental income from such house property shall
not be treated as house property income rather it shall be
treated as income under the head Business or Profession
Example1 Quarters let out to the employee’s own business or
profession
Example2 Building let out to a bank, Post Office, Police Station,
Excise Department and Police Department etc.
b)Income from sub -letting of house property
If a person occupies a building as tenant and let out full or
part of the hired building to another person, it is called sub -
letting.
c)Composite letting out of building along with furniture etc.
If a person let out building along with furniture, Plant,
Machinery and other facilities etc, for composite rent and
such composite rent is not separated between (a) rent of
building and (b) rent of other facilities then such composite
rent shall be income from other sources or if letting is a
business of the assessethen it is treated as income from
business or profession
d)Income from hotel business/ paying guest accommodation
Hotel used for business –Business Income
Hotel used for let out -House Property Income
If a person occupies a building as tenant and let out full or
part of the hired building to another person, it is called sub -
letting.
c)Composite letting out of building along with furniture etc.
If a person let out building along with furniture, Plant,
Machinery and other facilities etc, for composite rent and
such composite rent is not separated between (a) rent of
building and (b) rent of other facilities then such composite
rent shall be income from other sources or if letting is a
business of the assessethen it is treated as income from
business or profession
d)Income from hotel business/ paying guest accommodation
Hotel used for business –Business Income
Hotel used for let out -House Property Income
Exempted Income from House Property
1.Agricultural House Property (Sec2(1)(c) –Exempted from tax
2.House Property held for charitable purposes (Sec 11) –Exempted
3.Self-occupied but vacant house -Sec 23(3)
4.House used for own business or profession
5.Property held by registered trade union (Sec –10(24))
6.Income from house property held by following shall be exempted
a) House property held by local authority
b) House property held by Scientific research Institution
c) House property held at a political party
d) House property held by a University or any other educational
institution working for spreading education and not to earn profit
e) House property held by a hospital or medical institution working
for the spreading of medical services to people and are not meant
for earning profit.
1.Agricultural House Property (Sec2(1)(c) –Exempted from tax
2.House Property held for charitable purposes (Sec 11) –Exempted
3.Self-occupied but vacant house -Sec 23(3)
4.House used for own business or profession
5.Property held by registered trade union (Sec –10(24))
6.Income from house property held by following shall be exempted
a) House property held by local authority
b) House property held by Scientific research Institution
c) House property held at a political party
d) House property held by a University or any other educational
institution working for spreading education and not to earn profit
e) House property held by a hospital or medical institution working
for the spreading of medical services to people and are not meant
for earning profit.
Determination of Gross Annual Value (GAV)
Step: I 1. Municipal Renal Value –MRV XXX
2. Fair Rental Value –FRV XXX
(Which ever is Higher is value to be considered)
Step: II 1.Higher Value ( step:1) XXX
2.Standard Rent –SR XXX
(Which ever is Less is Expected Rental value –ERV)
Step: III 1. Expected Rental value –ERV XXX
2. Actual Rent Value -ARV XXX
(Which ever is more is value is GAV)
Gross Annual Value –GAV XXX
Step: I 1. Municipal Renal Value –MRV XXX
2. Fair Rental Value –FRV XXX
(Which ever is Higher is value to be considered)
Step: II 1.Higher Value ( step:1) XXX
2.Standard Rent –SR XXX
(Which ever is Less is Expected Rental value –ERV)
Step: III 1. Expected Rental value –ERV XXX
2. Actual Rent Value -ARV XXX
(Which ever is more is value is GAV)
Gross Annual Value –GAV XXX
1.From the figures given below Calculate Expected Rental Value (ERV)
Rentalvalue Case A
( Rs.)
Case B
( Rs.)
Case C
( Rs.)
MRV 30,000 30,000 30,000
FRV 36,000 36,000 36,000
StandardRent N.A 33,000 42,000
Rentalvalue Case A
( Rs.)
Case B
( Rs.)
Case C
( Rs.)
MRV 30,000 30,000 30,000
FRV 36,000 36,000 36,000
StandardRent N.A 33,000 42,000
1. Calculation of Expected Rental Value (ERV)
Rentalvalue Case A
( Rs.)
Case B
( Rs.)
Case C
( Rs.)
MRV 30,000 30,000 30,000
FRV 36,000 36,000 36,000
Which everis Higher 36,000 36,000 36,000
StandardRent N.A33,000 42,000
Whichever is lower is ERV36,000 33,000 36,000
Rentalvalue Case A
( Rs.)
Case B
( Rs.)
Case C
( Rs.)
MRV 30,000 30,000 30,000
FRV 36,000 36,000 36,000
Which everis Higher 36,000 36,000 36,000
StandardRent N.A33,000 42,000
Whichever is lower is ERV36,000 33,000 36,000
Calculation of Expected Rental Value (ERV)
Case: A MRV Rs.30,000
FRV Rs.36,000
SR NA
Which ever is Higher is ERV, ERV is Rs.36,000
Case: B MRV Rs.30,000
FRV Rs.36,000
Which ever is Higher is compare with Standard Rent
Higher value Rs.36,000
SR Rs. 33,000
Which ever is lower is ERV,ERV is Rs.33,000
Case: C MRV Rs.30,000
FRV Rs.36,000
Which ever is Higher is compare with Standard Rent
Higher value Rs.36,000
SR Rs.42,000
Which ever is lower is ERV,ERV is Rs.36,000
Case: A MRV Rs.30,000
FRV Rs.36,000
SR NA
Which ever is Higher is ERV, ERV is Rs.36,000
Case: B MRV Rs.30,000
FRV Rs.36,000
Which ever is Higher is compare with Standard Rent
Higher value Rs.36,000
SR Rs. 33,000
Which ever is lower is ERV,ERV is Rs.33,000
Case: C MRV Rs.30,000
FRV Rs.36,000
Which ever is Higher is compare with Standard Rent
Higher value Rs.36,000
SR Rs.42,000
Which ever is lower is ERV,ERV is Rs.36,000
2.From the figures given below Calculate Expected Rental Value (ERV)
Rentalvalue Case A
( Rs.)
Case B
( Rs.)
Case C
( Rs.)
MRV 1,08,0001,30,0001,28,000
FRV 1,20,0001,20,0001,20,000
StandardRent 1,02,000 N.A 1,38,000
Rentalvalue Case A
( Rs.)
Case B
( Rs.)
Case C
( Rs.)
MRV 1,08,0001,30,0001,28,000
FRV 1,20,0001,20,0001,20,000
StandardRent 1,02,000 N.A 1,38,000
2. Calculation of Expected Rental Value (ERV)
Rentalvalue Case A
( Rs.)
Case B
( Rs.)
Case C
( Rs.)
MRV 1,08,000 1,30,0001,28,000
FRV 1,20,000 1,20,0001,20,000
Which everis Higher 1,20,000 1,30,0001,28,000
StandardRent 1,02,000 N.A 1,38,000
Whichever is lower is ERV1,02,000 1,30,0001,28,000
Rentalvalue Case A
( Rs.)
Case B
( Rs.)
Case C
( Rs.)
MRV 1,08,000 1,30,0001,28,000
FRV 1,20,000 1,20,0001,20,000
Which everis Higher 1,20,000 1,30,0001,28,000
StandardRent 1,02,000 N.A 1,38,000
Whichever is lower is ERV1,02,000 1,30,0001,28,000
3.From the figures given below Calculate Annual Rental Value (ARV)
Rentalvalue Case A
( Rs.)
Case B
( Rs.)
MRV 60,000 60,000
FRV 66,000 66,000
StandardRent 69,000 69,000
Actual Rent 72,000 63,000
Rentalvalue Case A
( Rs.)
Case B
( Rs.)
MRV 60,000 60,000
FRV 66,000 66,000
StandardRent 69,000 69,000
Actual Rent 72,000 63,000
3.Calculation of Annual Rental Value (ARV)
Rentalvalue Case : A ( Rs.)Case : B ( Rs.)
MRV 60,000 60,000
FRV 66,000 66,000
Whichever is Higher Compare with SR 66,000 66,000
StandardRent 69,000 69,000
Whichever is lower is ERV A 66,000 66,000
Actual Rent B 72,000 63,000
ARV(A or B which ever is higher) 72,000 66,000
Rentalvalue Case : A ( Rs.)Case : B ( Rs.)
MRV 60,000 60,000
FRV 66,000 66,000
Whichever is Higher Compare with SR 66,000 66,000
StandardRent 69,000 69,000
Whichever is lower is ERV A 66,000 66,000
Actual Rent B 72,000 63,000
ARV(A or B which ever is higher) 72,000 66,000
4.From the figures given below Calculate Gross Annual Value (GAV)
Rentalvalue House: A ( Rs.)House: B ( Rs.)
MRV 80,000 80,000
FRV 1,00,000 1,00,000
StandardRent 70,000 1,20,000
Actual Rent 1,20,000 90,000
Rentalvalue House: A ( Rs.)House: B ( Rs.)
MRV 80,000 80,000
FRV 1,00,000 1,00,000
StandardRent 70,000 1,20,000
Actual Rent 1,20,000 90,000
4.Calculation of Gross Annual Value (GAV)
Rentalvalue HouseA ( Rs.)House B ( Rs.)
MRV 80,000 80,000
FRV 1,00,000 1,00,000
Whichever is Higher Compare with SR 1,00,000 1,00,000
StandardRent 70,000 1,20,000
Whichever is lower is ERV A 70,000 1,00,000
Actual Rent B 1,20,000 90,000
GAV(A or B which ever is higher) 120,000 100,000
Rentalvalue HouseA ( Rs.)House B ( Rs.)
MRV 80,000 80,000
FRV 1,00,000 1,00,000
Whichever is Higher Compare with SR 1,00,000 1,00,000
StandardRent 70,000 1,20,000
Whichever is lower is ERV A 70,000 1,00,000
Actual Rent B 1,20,000 90,000
GAV(A or B which ever is higher) 120,000 100,000
5.From the figures given below Calculate Gross Annual Value (GAV )
Rentalvalue A (Rs.)B (Rs.) C (Rs.)D (Rs.)
MRV 60,000 48,000 36,000 96,000
FRV 75,000 60,000 45,0001,16,000
RealRent 69,000 54,000 40,0001,20,000
StandardRent N.A 72,000 42,0001,15,000
Rentalvalue A (Rs.)B (Rs.) C (Rs.)D (Rs.)
MRV 60,000 48,000 36,000 96,000
FRV 75,000 60,000 45,0001,16,000
RealRent 69,000 54,000 40,0001,20,000
StandardRent N.A 72,000 42,0001,15,000
5.Calculation of Annual Rental Value (ARV )
Rentalvalue A (Rs.)B (Rs.) C (Rs.)D (Rs.)
MRV 60,000 48,000 36,000 96,000
FRV 75,000 60,000 45,0001,16,000
Whichever is Higher 75,000 60,000 45,0001,16,000
StandardRent N.A 72,000 42,0001,15,000
Which everis lower A75,000 60,000 42,0001,15,000
RealRent 69,000 54,000 40,0001,20,000
ARV 75,000 60,000 42,0001,20,000
Rentalvalue A (Rs.)B (Rs.) C (Rs.)D (Rs.)
MRV 60,000 48,000 36,000 96,000
FRV 75,000 60,000 45,0001,16,000
Whichever is Higher 75,000 60,000 45,0001,16,000
StandardRent N.A 72,000 42,0001,15,000
Which everis lower A75,000 60,000 42,0001,15,000
RealRent 69,000 54,000 40,0001,20,000
ARV 75,000 60,000 42,0001,20,000
6. Mr.Prakeshhas constructed a multistorybuilding at Delhi consisting of 40
flat is let out @ 1,000p.m. The Municipal authorities have fixed the rental
value of this property as Rs.4,50,000. The owner bears the following
expenses:
Particulars ( Rs.)
Liftmaintenance 12,000p.a.
Pumpmaintenance 8,000p.a.
Salaryof Gardener or
Watchman 3,600p.a.
Swimmingpool expenses 9,000p.a
Compute the Annual Rental Value of the property
flat is let out @ 1,000p.m. The Municipal authorities have fixed the rental
value of this property as Rs.4,50,000. The owner bears the following
expenses:
Particulars ( Rs.)
Liftmaintenance 12,000p.a.
Pumpmaintenance 8,000p.a.
Salaryof Gardener or
Watchman 3,600p.a.
Swimmingpool expenses 9,000p.a
Compute the Annual Rental Value of the property
6.Calculation of Annual Rental Value (ARV )
Rentalvalue (Rs.) (Rs.) (Rs.)
MunicipalRental Value 4,50,000
ActualRent (40x1,000 x12) 4,80,000
Less:Lift Maintenance 12,000
Pumpmaintenance 8,000
Salaryof Gardener or
Watchman 3,600
Swimmingpool expenses 9,000 32,6004,47,400
which ever is higheris ARV 4,50,000
Rentalvalue (Rs.) (Rs.) (Rs.)
MunicipalRental Value 4,50,000
ActualRent (40x1,000 x12) 4,80,000
Less:Lift Maintenance 12,000
Pumpmaintenance 8,000
Salaryof Gardener or
Watchman 3,600
Swimmingpool expenses 9,000 32,6004,47,400
which ever is higheris ARV 4,50,000
7. Compute the Annual Rental Value in the following case:
Particulars ( Rs.)
MunicipalRental Value 48,000p.a.
ActualRent Received 50,000p.a.
Lift and pump Maintenance charges paid
by owner 6,000p.a.
Salaryof common Gardener and
Watchman paid by tenantsto the owner
500p.m
actual expenses incurred by the owner
during the year are Rs.4,200
Particulars ( Rs.)
MunicipalRental Value 48,000p.a.
ActualRent Received 50,000p.a.
Lift and pump Maintenance charges paid
by owner 6,000p.a.
Salaryof common Gardener and
Watchman paid by tenantsto the owner
500p.m
actual expenses incurred by the owner
during the year are Rs.4,200
7.Calculation of Annual Rental Value (ARV )
Rentalvalue Rs.) (Rs.) (Rs.)
MunicipalRental Value 48,000
ActualRent (40x1,000 x12) 50,000
Less:Lift and Pumpmaintenance 6,000 6,00044,000
which ever is higheris ARV 48,000
Salaryof common Gardener and
Watchman paid by tenants to the owner
6,000
actual expenses incurred by the owner
during the year
4,200 1,800
Incomefrom other sources 1,800
Rentalvalue Rs.) (Rs.) (Rs.)
MunicipalRental Value 48,000
ActualRent (40x1,000 x12) 50,000
Less:Lift and Pumpmaintenance 6,000 6,00044,000
which ever is higheris ARV 48,000
Salaryof common Gardener and
Watchman paid by tenants to the owner
6,000
actual expenses incurred by the owner
during the year
4,200 1,800
Incomefrom other sources 1,800
8.From the figures given below Calculate Annual Rental Value (ARV)
a) House was vacant for Full Years during the previous year 2019-20
b) House was vacant for Two months during the previous year 2019 -20
c) Actual Rent of the house is Rs.4,000p.m. and was vacant for 2months
Rentalvalue ( Rs.)
MRV 60,000p.a.
FRV 66,000p.a.
ActualRent 7,000p.m.
StandardRent 69,000p.a
a) House was vacant for Full Years during the previous year 2019-20
b) House was vacant for Two months during the previous year 2019 -20
c) Actual Rent of the house is Rs.4,000p.m. and was vacant for 2months
Rentalvalue ( Rs.)
MRV 60,000p.a.
FRV 66,000p.a.
ActualRent 7,000p.m.
StandardRent 69,000p.a
8.Calculation of Annual Rental Value (ARV)
Rentalvalue Case: B ( Rs.)Case: C ( Rs.)
MRV 60,000 60,000
FRV 66,000 66,000
Whichever is Higher Compare with SR 66,000 66,000
StandardRent 69,000 69,000
Whichever is less is ERV A66,000 66,000
Actual Rent (7,000x12) (4000 X12) B 84,000 48,000
GAV(A or B which ever is higher) 84,000 66,000
Less:Loss due to Vacancy 14,000 8,000
Annual RentalValue -ARV 70,000 58,000
Rentalvalue Case: B ( Rs.)Case: C ( Rs.)
MRV 60,000 60,000
FRV 66,000 66,000
Whichever is Higher Compare with SR 66,000 66,000
StandardRent 69,000 69,000
Whichever is less is ERV A66,000 66,000
Actual Rent (7,000x12) (4000 X12) B 84,000 48,000
GAV(A or B which ever is higher) 84,000 66,000
Less:Loss due to Vacancy 14,000 8,000
Annual RentalValue -ARV 70,000 58,000
9. Calculate Annual Rental Value (ARV) from the particulars given below:
During the previous year assesseecould not realise the rent for 2months
Rentalvalue ( Rs.)
MRV 60,000p.a.
FRV 66,000p.a.
ActualRent 7,000p.m.
StandardRent 69,000p.a
During the previous year assesseecould not realise the rent for 2months
Rentalvalue ( Rs.)
MRV 60,000p.a.
FRV 66,000p.a.
ActualRent 7,000p.m.
StandardRent 69,000p.a
9.Calculation of Annual Rental Value (ARV)
Rentalvalue ( Rs.)
MRV 60,000
FRV 66,000
Whichever is Higher Compare with SR 66,000
StandardRent 69,000
Whichever is less is ERV A66,000
Actual Rent (7,000x12) 84,000
Less:unrealised rent (7,000 x 2) 14,000
Actual Rent B 70,000
ARV-( A or B Which ever is more) 70,000
Rentalvalue ( Rs.)
MRV 60,000
FRV 66,000
Whichever is Higher Compare with SR 66,000
StandardRent 69,000
Whichever is less is ERV A66,000
Actual Rent (7,000x12) 84,000
Less:unrealised rent (7,000 x 2) 14,000
Actual Rent B 70,000
ARV-( A or B Which ever is more) 70,000
10. Calculate Annual Rental Value (ARV) from the particulars given below:
During the previous year assesseecould not realise the rent for 2months
Rentalvalue ( Rs.)
MRV 60,000p.a.
FRV 66,000p.a.
ActualRent 6,000p.m.
StandardRent 69,000p.a
During the previous year assesseecould not realise the rent for 2months
Rentalvalue ( Rs.)
MRV 60,000p.a.
FRV 66,000p.a.
ActualRent 6,000p.m.
StandardRent 69,000p.a
10.Calculation of Annual Rental Value (ARV)
Rentalvalue ( Rs.)
MRV 60,000
FRV 66,000
Whichever is Higher Compare with SR 66,000
StandardRent 69,000
Whichever is less is ERV A66,000
Actual Rent (6,000x12) 72,000
Less:unrealised rent (6,000 x 2) 12,000
Actual Rent B 60,000
ARV-( A or B Which ever is more) 66,000
Rentalvalue ( Rs.)
MRV 60,000
FRV 66,000
Whichever is Higher Compare with SR 66,000
StandardRent 69,000
Whichever is less is ERV A66,000
Actual Rent (6,000x12) 72,000
Less:unrealised rent (6,000 x 2) 12,000
Actual Rent B 60,000
ARV-( A or B Which ever is more) 66,000
11 a) Calculate Annual Rental Value (ARV) from the particulars given below:
Assesseecould not realise the rent for 2months and also remained
vacant for 2months during the previous year 2019-20.
b) What difference it would make if every thing else remaining the same
but actual rent is Rs.6,000p.m.
Rentalvalue ( Rs.)
MRV 60,000p.a.
FRV 66,000p.a.
ActualRent 7,000p.m.
StandardRent 69,000p.a
Assesseecould not realise the rent for 2months and also remained
vacant for 2months during the previous year 2019-20.
b) What difference it would make if every thing else remaining the same
but actual rent is Rs.6,000p.m.
Rentalvalue ( Rs.)
MRV 60,000p.a.
FRV 66,000p.a.
ActualRent 7,000p.m.
StandardRent 69,000p.a
11.Calculation of Annual Rental Value (ARV)
Rentalvalue Case: A ( Rs.)Case: B ( Rs.)
MRV 60,000 60,000
FRV 66,000 66,000
Whichever is Higher Compare with SR 66,000 66,000
StandardRent 69,000 69,000
Whichever is less is ERV A66,000 66,000
Actual Rent (7,000x10) (6000 X10) B 70,000 60,000
GAV(A or B which ever is higher) 70,000 66,000
Less:Loss due to Vacancy 14,000 12,000
Annual RentalValue -ARV 56,000 54,000
Rentalvalue Case: A ( Rs.)Case: B ( Rs.)
MRV 60,000 60,000
FRV 66,000 66,000
Whichever is Higher Compare with SR 66,000 66,000
StandardRent 69,000 69,000
Whichever is less is ERV A66,000 66,000
Actual Rent (7,000x10) (6000 X10) B 70,000 60,000
GAV(A or B which ever is higher) 70,000 66,000
Less:Loss due to Vacancy 14,000 12,000
Annual RentalValue -ARV 56,000 54,000
12) Compute Annual Rental Value (ARV) from the particulars given below:
Rentalvalue ( Rs.)
MRV 60,000p.a.
FRV 66,000p.a.
ActualRent 6,000p.m.
StandardRent 63,000p.a
Date of Completion 31-05-2019
Dateof letting 1-08-2019
Rentalvalue ( Rs.)
MRV 60,000p.a.
FRV 66,000p.a.
ActualRent 6,000p.m.
StandardRent 63,000p.a
Date of Completion 31-05-2019
Dateof letting 1-08-2019
12.Calculation of Annual Rental Value (ARV)
Rentalvalue ( Rs.)
MRV (60,000x 10/12) 50,000
FRV (66,000x 10/12) 55,000
Whichever is Higher Compare with SR 55,000
StandardRent (63,000x 10/12) 52,500
Whichever is less is ERV A52,500
Real Rent (6,000x10) B60,000
Whichever is Higher is ARV 60,000
Less: Loss due to vacancy (6000 x 2) 12,000
AnnualRentalValue -ARV 48,000
Rentalvalue ( Rs.)
MRV (60,000x 10/12) 50,000
FRV (66,000x 10/12) 55,000
Whichever is Higher Compare with SR 55,000
StandardRent (63,000x 10/12) 52,500
Whichever is less is ERV A52,500
Real Rent (6,000x10) B60,000
Whichever is Higher is ARV 60,000
Less: Loss due to vacancy (6000 x 2) 12,000
AnnualRentalValue -ARV 48,000
13) Compute Annual Rental Value (ARV) from the particulars given below:
Rentalvalue ( Rs.)
MRV 84,000p.a.
FRV 90,000p.a.
RealRent 8,000p.m.
StandardRent 87,000p.a
UnrealisedRent 4,000
Date of Completion 31-07-2019
Dateof letting 1-10-2019
Rentalvalue ( Rs.)
MRV 84,000p.a.
FRV 90,000p.a.
RealRent 8,000p.m.
StandardRent 87,000p.a
UnrealisedRent 4,000
Date of Completion 31-07-2019
Dateof letting 1-10-2019
13.Calculation of Annual Rental Value (ARV)
Rentalvalue ( Rs.)
MRV (84,000x 8/12) 56,000
FRV (90,000x 8/12) 60,000
Whichever is Higher Compare with SR 60,000
StandardRent (87,000x 8/12) 58,000
Whichever is less is ERV A58,000
Real Rent (8,000x8 -4,000) B 60,000
Whichever is Higher is ARV 60,000
Less: Loss due to vacancy (8,000 x 2) 16,000
AnnualRentalValue -ARV 44,000
Rentalvalue ( Rs.)
MRV (84,000x 8/12) 56,000
FRV (90,000x 8/12) 60,000
Whichever is Higher Compare with SR 60,000
StandardRent (87,000x 8/12) 58,000
Whichever is less is ERV A58,000
Real Rent (8,000x8 -4,000) B 60,000
Whichever is Higher is ARV 60,000
Less: Loss due to vacancy (8,000 x 2) 16,000
AnnualRentalValue -ARV 44,000
14. From the particulars given below, Calculate Net
Annual Value for the previous year ending 31 -3-2020.
A. MRV ( Date of Completion is 1 -07-2018) 60,000p.a.
Actual Rent received 72,000p.a.
Tax levied by local authority and paid by owner
a) House Tax 6,000p.a.
b) Sanitation Cess 1,000p.a.
B. Date of completion 1-6-2019
Rent Received @ Rs.4,000p.m. 40,000p.a.
Municipal Rental Value 36,000p.a.
Municipal Tax are 10% of MRV
He paid 50% of taxes during the year 2019 -2020.
Annual Value for the previous year ending 31 -3-2020.
A. MRV ( Date of Completion is 1 -07-2018) 60,000p.a.
Actual Rent received 72,000p.a.
Tax levied by local authority and paid by owner
a) House Tax 6,000p.a.
b) Sanitation Cess 1,000p.a.
B. Date of completion 1-6-2019
Rent Received @ Rs.4,000p.m. 40,000p.a.
Municipal Rental Value 36,000p.a.
Municipal Tax are 10% of MRV
He paid 50% of taxes during the year 2019 -2020.
14.A)Calculation of Net Annual Value (NAV)
Rentalvalue ( Rs.)
MunicipalRentalValue 60,000
ActualRental Received 72,000
Whichever is Higher is ARV 72,000
Less:Local Taxes:
a) House Tax 6,000
b) Sanitation Cess 1,000 7,000
NetAnnual Value (NAV) 65,000
Rentalvalue ( Rs.)
MunicipalRentalValue 60,000
ActualRental Received 72,000
Whichever is Higher is ARV 72,000
Less:Local Taxes:
a) House Tax 6,000
b) Sanitation Cess 1,000 7,000
NetAnnual Value (NAV) 65,000
14.B)Calculation of Net Annual Value (NAV)
Rentalvalue ( Rs.)
Dateof Completion 1-6-2019(10 months)
MunicipalRentalValue (36,000 x10/12) 30,000
ActualRental Received (10 months) 40,000
Whichever is Higher is ARV 40,000
Less:Municipal taxes (actually paid by owner)
50% of ( 3,6000*10% x 10/12) 1,500
NetAnnual Value (NAV) 38,500
Rentalvalue ( Rs.)
Dateof Completion 1-6-2019(10 months)
MunicipalRentalValue (36,000 x10/12) 30,000
ActualRental Received (10 months) 40,000
Whichever is Higher is ARV 40,000
Less:Municipal taxes (actually paid by owner)
50% of ( 3,6000*10% x 10/12) 1,500
NetAnnual Value (NAV) 38,500
15. Mr.Downs a house at Vijay Nagar and submit the
following particulars: Rs.
Municipal Valuation 1,70,000
Standard Rent 1,60,000
Rent Received 1,75,000
Fair Rental Value 1,72,000
Municipal Taxes 12% of MRV+2% Municipal Taxes
as Sanitation Surcharge
Compute the Net Annual Value
following particulars: Rs.
Municipal Valuation 1,70,000
Standard Rent 1,60,000
Rent Received 1,75,000
Fair Rental Value 1,72,000
Municipal Taxes 12% of MRV+2% Municipal Taxes
as Sanitation Surcharge
Compute the Net Annual Value
15. Calculation of Net Annual Value (NAV)
Rentalvalue ( Rs.)
MunicipalRentalValue 1,70,000
FairRental Value 1,72,000
Whichever is Higher is compared with SR 1,72,000
StandardRent 1,60,000
Whichever is less is ERV 1,60,000
ActualRent Received 1,75,000
Gross Annual Value (GAV) 1,75,000
Less:Municipal Tax (1,70,000 x 12%) 20,400
Sanitation tax(20,400 x 2%) 408 20,808
NetAnnual Value (NAV) 1,54,192
Rentalvalue ( Rs.)
MunicipalRentalValue 1,70,000
FairRental Value 1,72,000
Whichever is Higher is compared with SR 1,72,000
StandardRent 1,60,000
Whichever is less is ERV 1,60,000
ActualRent Received 1,75,000
Gross Annual Value (GAV) 1,75,000
Less:Municipal Tax (1,70,000 x 12%) 20,400
Sanitation tax(20,400 x 2%) 408 20,808
NetAnnual Value (NAV) 1,54,192
16. Compute Income from House Property
Rs.
Municipal Rental Value 18,000
Rent Received 24,000
Municipal Taxes (50% paid by tenant) 1,800p.a.
Expenses incurred on repairs
a) By owner 3,000
b)By tenant 3,000
Collection Charges 1,000
Date of completion of house 1-6-1998
Compute the Net Annual Value
Rs.
Municipal Rental Value 18,000
Rent Received 24,000
Municipal Taxes (50% paid by tenant) 1,800p.a.
Expenses incurred on repairs
a) By owner 3,000
b)By tenant 3,000
Collection Charges 1,000
Date of completion of house 1-6-1998
Compute the Net Annual Value
16. Calculation of Income from House Property
Rentalvalue ( Rs.)
MunicipalRentalValue 18,000
ActualRent Received 24,000
Which ever is more is GAV 24,000
Less: Municipal tax (1,800 x 50%) 900
NetAnnual Value (NAV) 23,100
Deduction: u/s24
1. Standard Deduction (30% of23,100) 6,930
2. Interest on loan ---
Income from House Property 16,170
Rentalvalue ( Rs.)
MunicipalRentalValue 18,000
ActualRent Received 24,000
Which ever is more is GAV 24,000
Less: Municipal tax (1,800 x 50%) 900
NetAnnual Value (NAV) 23,100
Deduction: u/s24
1. Standard Deduction (30% of23,100) 6,930
2. Interest on loan ---
Income from House Property 16,170
Interest on Loan
a)Self occupied House –
only one deduction of Interest on loan taken to purchase,
repairs, renovate construct the house + 1/5
th
of Pre-
construction interest.
on or before 1-4-1999 Rs.30,000 or actual interest (w.e.l)
on or after 1-4-1999 Rs.2,00,000 or actual interest ( w.e.l)
b) Let out House -
Actual interest for the Previous Year 2019 -20 + 1/5
th
of
Pre-construction interest is allowed as deduction with no
limit. Interest on mortgage is not allowed as deduction
unless the purpose of the loan connected with house.
a)Self occupied House –
only one deduction of Interest on loan taken to purchase,
repairs, renovate construct the house + 1/5
th
of Pre-
construction interest.
on or before 1-4-1999 Rs.30,000 or actual interest (w.e.l)
on or after 1-4-1999 Rs.2,00,000 or actual interest ( w.e.l)
b) Let out House -
Actual interest for the Previous Year 2019 -20 + 1/5
th
of
Pre-construction interest is allowed as deduction with no
limit. Interest on mortgage is not allowed as deduction
unless the purpose of the loan connected with house.
17. Compute Income from House Property from the
particulars given below for the A.Y.2020 -21.
Particulars Rs.
Municipal Rental Value 24,000
Rent Received 30,000
Municipal Taxes 2,400p.a.
Fire insurance Premium (due) 400p.a.
Ground Rent (due) 600p.a.
Interest on loan taken to construct the house
2013-14 to 2018-19 15,000p.a.
2019-20 10,000p.a.
Interest on delayed payment interest 1,000
Date of completion 31-3-2016
Date of letting 1-4-2016
particulars given below for the A.Y.2020 -21.
Particulars Rs.
Municipal Rental Value 24,000
Rent Received 30,000
Municipal Taxes 2,400p.a.
Fire insurance Premium (due) 400p.a.
Ground Rent (due) 600p.a.
Interest on loan taken to construct the house
2013-14 to 2018-19 15,000p.a.
2019-20 10,000p.a.
Interest on delayed payment interest 1,000
Date of completion 31-3-2016
Date of letting 1-4-2016
17. Calculation of Income from House Property
Rentalvalue
( Rs.)
MunicipalRentalValue 24,000
ActualRent Received 30,000
Which ever is more is GAV 30,000
Less: Municipal tax 2,400
NetAnnual Value (NAV) 27,600
Deduction: u/s24 1. S.D.(27,600 X 30%) 8,280
2.Interest on loan forP.Y 2019-20 10,000
Pre-constructionInterest (15,000+15,000 x 1/5) 6,000
Income from House Property 3,320
Rentalvalue
( Rs.)
MunicipalRentalValue 24,000
ActualRent Received 30,000
Which ever is more is GAV 30,000
Less: Municipal tax 2,400
NetAnnual Value (NAV) 27,600
Deduction: u/s24 1. S.D.(27,600 X 30%) 8,280
2.Interest on loan forP.Y 2019-20 10,000
Pre-constructionInterest (15,000+15,000 x 1/5) 6,000
Income from House Property 3,320
18.MRV of the residential house is Rs.24,000 and
actual rent is Rs.2,500p.m. During the previous year
2019-20 house was vacant for two months. The
Municipal Taxes are @10% of MRV. During the year
owner paid Rs.30,000 as arrears of Municipal Taxes.
Interest on loan taken for the construction of house
payable to his employer is Rs.16,000. Compute
Income from House Property.
actual rent is Rs.2,500p.m. During the previous year
2019-20 house was vacant for two months. The
Municipal Taxes are @10% of MRV. During the year
owner paid Rs.30,000 as arrears of Municipal Taxes.
Interest on loan taken for the construction of house
payable to his employer is Rs.16,000. Compute
Income from House Property.
18. Calculation of Income from House Property
Rentalvalue ( Rs.)
MunicipalRentalValue 24,000
ActualRent Received (2,500 x 12) 30,000
Which ever is more is GAV 30,000
Less: Loss due to vacancy 5,000
Annual Rental Value (ARV) 25,000
Less:M. tax(24,000 x 10% + Arrears Rs.30,000) 32400
Net AnnualValue (Negative) (7,400)
Less: Deduction: 1. S.D (30% of NAV) ---
2.Interest on loan 16,000
Loss from House Property (23,400)
Rentalvalue ( Rs.)
MunicipalRentalValue 24,000
ActualRent Received (2,500 x 12) 30,000
Which ever is more is GAV 30,000
Less: Loss due to vacancy 5,000
Annual Rental Value (ARV) 25,000
Less:M. tax(24,000 x 10% + Arrears Rs.30,000) 32400
Net AnnualValue (Negative) (7,400)
Less: Deduction: 1. S.D (30% of NAV) ---
2.Interest on loan 16,000
Loss from House Property (23,400)
19. Mr.Sowner house property of Cochin. It consists of 3
independent units and information about the property is given
below: UNIT 1: Own residence
UNIT2 : Let out
UNIT3 : Own Business Rs.
MRV 1,20,000p.a.
FRV 1,32,000p.a.
Standard Rent 1,08,000p.a.
Unrealised Rent ( 3months) 3,500p.m.
Repairs 10,000p.a.
Insurance 2,000p.a.
Interest on money borrowed for the
Construction of property 96,000p.a.
Municipal tax 14,400p.a.
Date of completion 01-11-2013
independent units and information about the property is given
below: UNIT 1: Own residence
UNIT2 : Let out
UNIT3 : Own Business Rs.
MRV 1,20,000p.a.
FRV 1,32,000p.a.
Standard Rent 1,08,000p.a.
Unrealised Rent ( 3months) 3,500p.m.
Repairs 10,000p.a.
Insurance 2,000p.a.
Interest on money borrowed for the
Construction of property 96,000p.a.
Municipal tax 14,400p.a.
Date of completion 01-11-2013
19. Calculation of Income from House Property
Rentalvalue
OwnResidence Let out ( Rs.)OwnBusiness
MRV (1,20,000 x 1/3) 40,000
FRV (1,32,000 x 1/3) 44,000
Which everis Higher 44,000
StandardRent (1,08,000 x 1/3) 36,000
Whichever is lower is ERV 36,000
ActualRent –unrealised rent
42,000 –(3,500 x 3) 31,500
Whichever is more is GAV 36,000
Less: M. Tax (14,400 x 1/3) 4,800
Net AnnualValue -NAV NIL 31200 NIL
Rentalvalue
OwnResidence Let out ( Rs.)OwnBusiness
MRV (1,20,000 x 1/3) 40,000
FRV (1,32,000 x 1/3) 44,000
Which everis Higher 44,000
StandardRent (1,08,000 x 1/3) 36,000
Whichever is lower is ERV 36,000
ActualRent –unrealised rent
42,000 –(3,500 x 3) 31,500
Whichever is more is GAV 36,000
Less: M. Tax (14,400 x 1/3) 4,800
Net AnnualValue -NAV NIL 31200 NIL
19. Calculation of Income from House Property
Rentalvalue
OwnResidence Let out ( Rs.)OwnBusiness
Net AnnualValue -NAV NIL 31200 NIL
Deduction u/s 24
1. S.D (30% ofNAV) --- 9,360 ---
2. Intereston loan
(96,000 x 1/3) 32,000 32,000 ---
Loss from House Property (32,000) (10,160) NIL
Total Loss from H.P (42,160)
Rentalvalue
OwnResidence Let out ( Rs.)OwnBusiness
Net AnnualValue -NAV NIL 31200 NIL
Deduction u/s 24
1. S.D (30% ofNAV) --- 9,360 ---
2. Intereston loan
(96,000 x 1/3) 32,000 32,000 ---
Loss from House Property (32,000) (10,160) NIL
Total Loss from H.P (42,160)
20.Following are the particulars of 2 let out house of Mr.Arul
Rentalvalue House: A ( Rs.)HouseB ( Rs.)
MRV 4,20,000 3,50,000
FRV 3,60,000 3,80,000
StandardRent 4,40,000 3,20,000
Actual Rent 4,80,000 4,20,000
Unrealisedrent for the current year 40,000 70,000
Vacancy 2 months 1 month
Municipal taxActually paid 12,000 35,000
Duebut not paid 30,000 10,000
Repairs 10,000 8,000
Insurance Premium 12,000 6,000
Other expenses 8,000 10,000
Interest on money borrowed for the purchase of House
Determine Mr. Arul’s Income from House Property
--- 60,000
Rentalvalue House: A ( Rs.)HouseB ( Rs.)
MRV 4,20,000 3,50,000
FRV 3,60,000 3,80,000
StandardRent 4,40,000 3,20,000
Actual Rent 4,80,000 4,20,000
Unrealisedrent for the current year 40,000 70,000
Vacancy 2 months 1 month
Municipal taxActually paid 12,000 35,000
Duebut not paid 30,000 10,000
Repairs 10,000 8,000
Insurance Premium 12,000 6,000
Other expenses 8,000 10,000
Interest on money borrowed for the purchase of House
Determine Mr. Arul’s Income from House Property
--- 60,000
20.Computation of House Property Income of Mr.ArulA.Y.2020-21
Rentalvalue House: A ( Rs.)HouseB ( Rs.)
MRV 4,20,000 3,50,000
FRV 3,60,000 3,80,000
Whichever is higher is to be considered 4,20,000 3,80,000
Higher Value 4,20,000 3,80,000
StandardRent 4,40,000 3,20,000
Whichever is less is ERV 4,20,000 3,20,000
Actual Rent –UR (4,80,000-40,000) (4,20,000-70,000) 4,40,000 3,50,000
Whichever is higher is GAV 4,40,000 3,50,000
Vacancy ( House A -2 months) ( House –B 1 month) 80,000 35,000
AnnualRental Value ARV 3,60,000 3,15,000
Municipal taxActually paid 12,000 35,000
NetAnnual Value -NAV 3,48,000 2,80,000
Rentalvalue House: A ( Rs.)HouseB ( Rs.)
MRV 4,20,000 3,50,000
FRV 3,60,000 3,80,000
Whichever is higher is to be considered 4,20,000 3,80,000
Higher Value 4,20,000 3,80,000
StandardRent 4,40,000 3,20,000
Whichever is less is ERV 4,20,000 3,20,000
Actual Rent –UR (4,80,000-40,000) (4,20,000-70,000) 4,40,000 3,50,000
Whichever is higher is GAV 4,40,000 3,50,000
Vacancy ( House A -2 months) ( House –B 1 month) 80,000 35,000
AnnualRental Value ARV 3,60,000 3,15,000
Municipal taxActually paid 12,000 35,000
NetAnnual Value -NAV 3,48,000 2,80,000
20.Following are the particulars of 2 let out house of Mr.Arul
Rentalvalue House: A ( Rs.)HouseB ( Rs.)
Net AnnualValue -NAV 3,48,000 2,80,000
Deduction u/s 24
1. S.D (30% ofNAV) 1,04,400 84,000
2. Intereston loan 60,000
Incomefrom Let out House 2,43,600 1,36,000
House A 2,43,600
House B 1,36,000
Total Income from House Property 3,79,000
Rentalvalue House: A ( Rs.)HouseB ( Rs.)
Net AnnualValue -NAV 3,48,000 2,80,000
Deduction u/s 24
1. S.D (30% ofNAV) 1,04,400 84,000
2. Intereston loan 60,000
Incomefrom Let out House 2,43,600 1,36,000
House A 2,43,600
House B 1,36,000
Total Income from House Property 3,79,000
21. Mr. P is the owner of the house property in Rourkela. It has
been let out for Rs.90,000. The tax payable by the owner comes
to Rs.8,400 on Municipal Valuation of Rs.84,000 but the landlord
has taken an agreement from the tenant stating that tenant
would pay tax direct to the municipality. The landlord, however,
bears the following expenses on tenant’s amenities: Rs.
1. Water charges ( as per the agreement) 1,000
2. Lift Maintenance 1,000
3. Salary of Gardener 1,200
4. Lighting of Stairs 800
The Landlord claims the following deductions
1.Repairs 30,000
2.Land Revenue 1,000
3.Collection Charges 2,000
4.Legal Charges incurred on purchase of land on
Which house property situated 24,000
Compute the taxable income from house property
been let out for Rs.90,000. The tax payable by the owner comes
to Rs.8,400 on Municipal Valuation of Rs.84,000 but the landlord
has taken an agreement from the tenant stating that tenant
would pay tax direct to the municipality. The landlord, however,
bears the following expenses on tenant’s amenities: Rs.
1. Water charges ( as per the agreement) 1,000
2. Lift Maintenance 1,000
3. Salary of Gardener 1,200
4. Lighting of Stairs 800
The Landlord claims the following deductions
1.Repairs 30,000
2.Land Revenue 1,000
3.Collection Charges 2,000
4.Legal Charges incurred on purchase of land on
Which house property situated 24,000
Compute the taxable income from house property
21.Computation of House Property Income of Mr.PA.Y.2020-21
Rentalvalue ( Rs.)
AnnualRental Value 90,000
Less:Expenses met by landlord on amenities provided to the tenants
1. Water charges ( as per the agreement) 1,000
2. Lift Maintenance 1,000
3. Salary of Gardener 1,200
4. Lighting of Stairs 800 4,000
Real Rent 86,000
MRV 84,000
Whichever is higher is GAV 86,000
Less: Municipal taxes NIL
NetAnnual Value -NAV 86,000
Deduction: u/s 24 (30% NAV) (86,000 X 30%) 25,800
Income from HouseProperty 60,200
Rentalvalue ( Rs.)
AnnualRental Value 90,000
Less:Expenses met by landlord on amenities provided to the tenants
1. Water charges ( as per the agreement) 1,000
2. Lift Maintenance 1,000
3. Salary of Gardener 1,200
4. Lighting of Stairs 800 4,000
Real Rent 86,000
MRV 84,000
Whichever is higher is GAV 86,000
Less: Municipal taxes NIL
NetAnnual Value -NAV 86,000
Deduction: u/s 24 (30% NAV) (86,000 X 30%) 25,800
Income from HouseProperty 60,200
22. The house was completed on April 1, 2019 and the
following information is available about this house:
Municipal Rental Value 30,000p.a.
Fair Rental Value 32,000p.a.
Actual Rent 4,000p.m.
Municipal taxes 6,000p.a.
Let out for the period 1-4-2019 to 31-12-219 and self
occupied from 1-1-2020 onwards
Fire Insurance Premium 3,600
Land Revenue 6,000
Interest on loan for the period
a) 1-4-2016 to 31-3-2019 45,000
b) 1-4-2019 to 31-3-2020 15,000
Calculate income from house property for the P.Y 2019 -20.
following information is available about this house:
Municipal Rental Value 30,000p.a.
Fair Rental Value 32,000p.a.
Actual Rent 4,000p.m.
Municipal taxes 6,000p.a.
Let out for the period 1-4-2019 to 31-12-219 and self
occupied from 1-1-2020 onwards
Fire Insurance Premium 3,600
Land Revenue 6,000
Interest on loan for the period
a) 1-4-2016 to 31-3-2019 45,000
b) 1-4-2019 to 31-3-2020 15,000
Calculate income from house property for the P.Y 2019 -20.
22.Computation of Income from House Property for A.Y.2020 -21
Rentalvalue ( Rs.)
MunicipalRentalValue( treatedas lot out) 30,000
FairRental Value 32,000
Whichever is Higher IS ERV 32,000
ActualRent Received (4,000 X 9) 36,000
Whichever is higher is GAV 36,000
Less:Municipal Taxes 6,000
Net Annual Value (NAV) 30,000
Deduction: u/s 24 1. S.D (30% of 30,000) 9,000
Intereston loan (15,000 + 1/5
th
of PIC (45,000 X 1/5) 24,000
Loss from House Property (3,000)
Rentalvalue ( Rs.)
MunicipalRentalValue( treatedas lot out) 30,000
FairRental Value 32,000
Whichever is Higher IS ERV 32,000
ActualRent Received (4,000 X 9) 36,000
Whichever is higher is GAV 36,000
Less:Municipal Taxes 6,000
Net Annual Value (NAV) 30,000
Deduction: u/s 24 1. S.D (30% of 30,000) 9,000
Intereston loan (15,000 + 1/5
th
of PIC (45,000 X 1/5) 24,000
Loss from House Property (3,000)
Interest on Loan
a)Self occupied House –
only one deduction of Interest on loan taken to purchase,
repairs, renovate construct the house.
a) If loan is taken for acquiring and constructing house on
or before 1-4-1999 Rs.30,000 or actual interest (w.e.l)
b) If loan is taken for acquiring and constructing house on or
after 1-4-1999 Rs.2,00,000 or actual interest ( w.e.l)
b) Let out House -
Actual interest for the Previous Year 2019 -20 + 1/5
th
of
Pre-construction interest is allowed as deduction with no
limit. Interest on mortgage is not allowed as deduction
unless the purpose of the loan connected with house.
a)Self occupied House –
only one deduction of Interest on loan taken to purchase,
repairs, renovate construct the house.
a) If loan is taken for acquiring and constructing house on
or before 1-4-1999 Rs.30,000 or actual interest (w.e.l)
b) If loan is taken for acquiring and constructing house on or
after 1-4-1999 Rs.2,00,000 or actual interest ( w.e.l)
b) Let out House -
Actual interest for the Previous Year 2019 -20 + 1/5
th
of
Pre-construction interest is allowed as deduction with no
limit. Interest on mortgage is not allowed as deduction
unless the purpose of the loan connected with house.
Case
Dateof
Loan
(DOL)
Dateof
Repayment
(DOR)
Dateof
Completion
(DOC)
Pre-
construction
Period (PCP)
A 1-8-2015 01-07-2020 Nov –2020 1-8-2015 -1-7-2020
B 1-8-2015 21-06-2021 Dec –2020 1-8-2015-31-3-2020
C 1-8-2015 20-06-2021 Feb –2020 1-8-2015 -31-3-2019
Dateof
Loan
(DOL)
Dateof
Repayment
(DOR)
Dateof
Completion
(DOC)
Pre-
construction
Period (PCP)
A 1-8-2015 01-07-2020 Nov –2020 1-8-2015 -1-7-2020
B 1-8-2015 21-06-2021 Dec –2020 1-8-2015-31-3-2020
C 1-8-2015 20-06-2021 Feb –2020 1-8-2015 -31-3-2019
23. From the particulars given below compute income
from house property which consists of two
independent units having 1/3
rd
and 2/3
rd
area.
Date of completion 1-11-2013
Municipal Rental Value 96,000p.a.
Fair Rental Value 84,000p.a.
Self-occupied 2/3 portion
Let out 1/3portion
From 1-4-2019 to [email protected],200 p.m.
And self-occupied from 1-9-2019 onwards.
Municipal taxes 6,000p.a.
Fire Insurance Premium 2,000p.a.
Ground Rent 4,000p.a.
Interest on loan 7,500p.a.
from house property which consists of two
independent units having 1/3
rd
and 2/3
rd
area.
Date of completion 1-11-2013
Municipal Rental Value 96,000p.a.
Fair Rental Value 84,000p.a.
Self-occupied 2/3 portion
Let out 1/3portion
From 1-4-2019 to [email protected],200 p.m.
And self-occupied from 1-9-2019 onwards.
Municipal taxes 6,000p.a.
Fire Insurance Premium 2,000p.a.
Ground Rent 4,000p.a.
Interest on loan 7,500p.a.
23.Computation of Income from House Property for A.Y.2020 -21
Rentalvalue (1/3
rd
House(unit 2) let out ) ( Rs.)
MRV (96,000 x 1/3) 32,000
FRV (84,000 x 1/3) 28,000
Whichever is Higher IS ERV 32,000
ActualRent Received (7,200 X 5) 36,000
Whichever is higher is GAV 36,000
Less:Municipal Taxes (1/3 of 6,000) 2,000
Net Annual Value (NAV) 34,000
Deduction: u/s 24 1. S.D (30% of 34,000) 10,200
2.Intereston loan (1/3 of Rs.7,500) 2,500
Income from House Property 21,300
Rentalvalue (1/3
rd
House(unit 2) let out ) ( Rs.)
MRV (96,000 x 1/3) 32,000
FRV (84,000 x 1/3) 28,000
Whichever is Higher IS ERV 32,000
ActualRent Received (7,200 X 5) 36,000
Whichever is higher is GAV 36,000
Less:Municipal Taxes (1/3 of 6,000) 2,000
Net Annual Value (NAV) 34,000
Deduction: u/s 24 1. S.D (30% of 34,000) 10,200
2.Intereston loan (1/3 of Rs.7,500) 2,500
Income from House Property 21,300
23.Computation of Income from House Property for A.Y.2020 -21
Rentalvalue ( Rs.)
2/3
rd
House(unit 1) under own construction
Net Annual Value (NAV) NIL
Less:Deduction: u/s 24 1. S.D (30% of NAV) NIL
Intereston loan (2/3 of Rs.7,500) 5,000
Loss from House Property (5,000)
Unit: 1 (2/3 own construction) Loss (5,000)
Unit: 2 (1/3 Let out) Income from House Property 21,300
Incomefrom House Property 16,300
Rentalvalue ( Rs.)
2/3
rd
House(unit 1) under own construction
Net Annual Value (NAV) NIL
Less:Deduction: u/s 24 1. S.D (30% of NAV) NIL
Intereston loan (2/3 of Rs.7,500) 5,000
Loss from House Property (5,000)
Unit: 1 (2/3 own construction) Loss (5,000)
Unit: 2 (1/3 Let out) Income from House Property 21,300
Incomefrom House Property 16,300
24. Following are the particulars of two house properties owned by Narain.
Rentalvalue HouseA( Rs.) HouseB( Rs.)
MRV 96,000 90,000
FRV 88,000 96,000
StandardRent 90,000 108,000
Actual Rent Received 9,000p.m. 10,000p.m.
Selfoccupied (1-4-19 to 30-11-19) (1-12-19 to 31-03-20)
Let out (1-12-19 to 31-03-20)(1-4-19 to 30-11-19)
Municipaltax –Due 6,000 8,000
-paid 3,000 NIL
Intereston borrowed money 10,000 42,000
Loan taken to construct House II is still outstanding loan was taken in 1998
Find out Mr. Swami’s Income from house property.
Rentalvalue HouseA( Rs.) HouseB( Rs.)
MRV 96,000 90,000
FRV 88,000 96,000
StandardRent 90,000 108,000
Actual Rent Received 9,000p.m. 10,000p.m.
Selfoccupied (1-4-19 to 30-11-19) (1-12-19 to 31-03-20)
Let out (1-12-19 to 31-03-20)(1-4-19 to 30-11-19)
Municipaltax –Due 6,000 8,000
-paid 3,000 NIL
Intereston borrowed money 10,000 42,000
Loan taken to construct House II is still outstanding loan was taken in 1998
Find out Mr. Swami’s Income from house property.
24. Following are the particulars of two house properties owned by Narain.
HouseA( Rs.)HouseB( Rs.)
MRV 96,000 90,000
FRV 88,000 96,000
Whichever is Higher Compare with SR 96,000 96,000
StandardRent 90,000 1,08,000
Whichever is less is ERV 90,000 96,000
Actual Rent A (9,000x4) B (10,000 X8) 36,000 80,000
GAV(A or B which ever is higher) 90,000 96,000
Less:Municipal taxes (paid) 3,000 NIL
NetAnnual Value –NAV 87,000 96,000
HouseA( Rs.)HouseB( Rs.)
MRV 96,000 90,000
FRV 88,000 96,000
Whichever is Higher Compare with SR 96,000 96,000
StandardRent 90,000 1,08,000
Whichever is less is ERV 90,000 96,000
Actual Rent A (9,000x4) B (10,000 X8) 36,000 80,000
GAV(A or B which ever is higher) 90,000 96,000
Less:Municipal taxes (paid) 3,000 NIL
NetAnnual Value –NAV 87,000 96,000
Where a house property is self -occupied for a part of
the year and let out for remaining part of the year the
benefit of self-occupancy u/s 23 (2)(a) is not
available and the income of such a house property will
be computed as if the house is let out.
NetAnnual Value –NAV 87,000 96,000
Deduction:u/s 24 1.S.D ( 30% of NAV) 26,100 28,800
2. Intereston loan 10,000 42,000
Income from HouseProperty 50,900 25,200
the year and let out for remaining part of the year the
benefit of self-occupancy u/s 23 (2)(a) is not
available and the income of such a house property will
be computed as if the house is let out.
NetAnnual Value –NAV 87,000 96,000
Deduction:u/s 24 1.S.D ( 30% of NAV) 26,100 28,800
2. Intereston loan 10,000 42,000
Income from HouseProperty 50,900 25,200
25. Mr. Raghavowns a residential house property. It is two
equal residential units –Unit-I and Unit –II. While Unit I is self
occupied by Raghavfor his residential purpose; Unit II is Let out
(rent being Rs.6,000p.m, rent two months could not be
recovered). Municipal value of the property is Rs.1,30,000,
standard rent is Rs.1,25,000 and fair rent is Rs.1,40,000.
Municipal tax is imposed at 15% which is paid by Raghav. Other
expenses for the previous year 2019 -20 being repairs Rs.800,
Insurance Rs.1,500, interest on Loan (borrowed during 1998)
for constructing the property Rs.63,000p.a.
Compute the taxable income of Mr.Raghavfor the A.Y.2020-21.
equal residential units –Unit-I and Unit –II. While Unit I is self
occupied by Raghavfor his residential purpose; Unit II is Let out
(rent being Rs.6,000p.m, rent two months could not be
recovered). Municipal value of the property is Rs.1,30,000,
standard rent is Rs.1,25,000 and fair rent is Rs.1,40,000.
Municipal tax is imposed at 15% which is paid by Raghav. Other
expenses for the previous year 2019 -20 being repairs Rs.800,
Insurance Rs.1,500, interest on Loan (borrowed during 1998)
for constructing the property Rs.63,000p.a.
Compute the taxable income of Mr.Raghavfor the A.Y.2020-21.
25.Computation of Income from H.P of Mr. Raghavfor the A.Y. 2020-21
Rentalvalue(two equal residential units of a
house are treated separate house
Let out ( Rs.)Selfoccupied
MRV (1,30,000 x 1/2) 65,000
FRV (1,40,000 x 1/2) 70,000
Which everis Higher 70,000
StandardRent (1,25,000 x 1/2) 62,500
Whichever is lower is ERV 62,500
ActualRent (6000x12 –UR 6000X2) 60,000
Whichever is more is GAV 62,500
Less: M. Tax (65,000 x 15%) 9,750
Net AnnualValue –NAV 52,750 NIL
Rentalvalue(two equal residential units of a
house are treated separate house
Let out ( Rs.)Selfoccupied
MRV (1,30,000 x 1/2) 65,000
FRV (1,40,000 x 1/2) 70,000
Which everis Higher 70,000
StandardRent (1,25,000 x 1/2) 62,500
Whichever is lower is ERV 62,500
ActualRent (6000x12 –UR 6000X2) 60,000
Whichever is more is GAV 62,500
Less: M. Tax (65,000 x 15%) 9,750
Net AnnualValue –NAV 52,750 NIL
25.Computation of Income from H.P of Mr. Raghavfor the A.Y. 2020-21
Rentalvalue(two equal residential units of a
house are treated separate house
Let out ( Rs.)Selfoccupied
Net AnnualValue –NAV 52,750 NIL
Less:Deduction: u/s 24 1.S.D(30% of NAV) 15,825 ---
Intereston loan (63,000 x 1/2) 31,500 30,000
Income from House Property 5,425
Loss from House Property (30,000)
Let out–Income from House Property 5,425
Self occupied –Loss from HouseProperty (30,000)
Net Lossfrom House Property (24,575)
Rentalvalue(two equal residential units of a
house are treated separate house
Let out ( Rs.)Selfoccupied
Net AnnualValue –NAV 52,750 NIL
Less:Deduction: u/s 24 1.S.D(30% of NAV) 15,825 ---
Intereston loan (63,000 x 1/2) 31,500 30,000
Income from House Property 5,425
Loss from House Property (30,000)
Let out–Income from House Property 5,425
Self occupied –Loss from HouseProperty (30,000)
Net Lossfrom House Property (24,575)
26. The particulars of residential house completed on 31
st
may,
2017 are given below:
Rs.
1. Rent 800p.m.
2. Municipal tax paid 1,800
3. Ground Rent 50
4. Insurance 80
5. Interest on amount borrowed for construction of this house 1,000
6. Collection Charges 300
The asesseemortgaged the house for Rs.36,000 to meet the
expenses of his daughter’s marriage and paid on interest of
Rs.3,000 of the mortgage loan during the year. The assesseealso
claimed that he has not realised rents from his tenants for earlier
years to the extent of Rs.2,000 and he proved his claim to the
entire satisfaction of the Assessing Officer that the conditions for
its admissibility were satisfied. Compute the Income from the
head House property of the assesseefor the year.
st
may,
2017 are given below:
Rs.
1. Rent 800p.m.
2. Municipal tax paid 1,800
3. Ground Rent 50
4. Insurance 80
5. Interest on amount borrowed for construction of this house 1,000
6. Collection Charges 300
The asesseemortgaged the house for Rs.36,000 to meet the
expenses of his daughter’s marriage and paid on interest of
Rs.3,000 of the mortgage loan during the year. The assesseealso
claimed that he has not realised rents from his tenants for earlier
years to the extent of Rs.2,000 and he proved his claim to the
entire satisfaction of the Assessing Officer that the conditions for
its admissibility were satisfied. Compute the Income from the
head House property of the assesseefor the year.
26.Computation of Income from House Property for A.Y.2020 -21
Rentalvalue (Let out House) ( Rs.)
Rent(800 x 12) 9,600
Less: Unrealised Rent 2,000
GAV 7,600
Less:Municipal Taxes 1,800
Net Annual Value (NAV) 5,800
Deduction: u/s 24 1. S.D (30% of 5,800) 1,740
2. Intereston loan 1,000
Incomefrom House Property 3,060
Intereston Mortgage shall not be allowed as money received has
been utilised to meet the expenses of his daughter’s marriage
Rentalvalue (Let out House) ( Rs.)
Rent(800 x 12) 9,600
Less: Unrealised Rent 2,000
GAV 7,600
Less:Municipal Taxes 1,800
Net Annual Value (NAV) 5,800
Deduction: u/s 24 1. S.D (30% of 5,800) 1,740
2. Intereston loan 1,000
Incomefrom House Property 3,060
Intereston Mortgage shall not be allowed as money received has
been utilised to meet the expenses of his daughter’s marriage
27. Mr. Joseph is owner of a residential house construction of
which was completed on 31 -10-2011 and it has been let out
from 1-12-2011 for residential purposes, Its other
particulars are: Rs.
Municipal Rental Value 15,000p.a.
Fair Rental Value 18,000p.a.
Standard Rent under rent control act 1,500p.m.
Actual Rent 1,600p.m.
Municipal taxes paid (including Rs.1,500 paid by tenant) 2,500
Water and Sewerage benefit tax levied by the state
Government not paid yet as it is disputed in appeal 1,200
Fire Insurance payable 600
Legal charges for recovery of rent 1,500
Stamp duty and Registration charges incurred in
Respect of lease agreement of the house. 3,000
The unrealised rent for the year 2017 -18 amounted to Rs.16,000
Out of which a deduction has been claimed for Rs.12,000.During the year
Rs.14,000 were recovered from the defaulting tenant. Compute income from
house property for the P.Y 2019 -20.
which was completed on 31 -10-2011 and it has been let out
from 1-12-2011 for residential purposes, Its other
particulars are: Rs.
Municipal Rental Value 15,000p.a.
Fair Rental Value 18,000p.a.
Standard Rent under rent control act 1,500p.m.
Actual Rent 1,600p.m.
Municipal taxes paid (including Rs.1,500 paid by tenant) 2,500
Water and Sewerage benefit tax levied by the state
Government not paid yet as it is disputed in appeal 1,200
Fire Insurance payable 600
Legal charges for recovery of rent 1,500
Stamp duty and Registration charges incurred in
Respect of lease agreement of the house. 3,000
The unrealised rent for the year 2017 -18 amounted to Rs.16,000
Out of which a deduction has been claimed for Rs.12,000.During the year
Rs.14,000 were recovered from the defaulting tenant. Compute income from
house property for the P.Y 2019 -20.
27.Computation of Income from House Property for P.Y.2019 -20
Rentalvalue (Let out House) ( Rs.)
Municipal Rent 15,000
FairRental Value 18,000
Which ever is higher is compare with S.R 18,000
Standard Rent 18,000
Which ever is lower is ERV 18,000
ActualRent(1,600 x 12) 19,200
Whichever is higher is GAV 19,200
Less:Municipal Taxes 1,000
Net Annual Value (NAV) 18,200
Rentalvalue (Let out House) ( Rs.)
Municipal Rent 15,000
FairRental Value 18,000
Which ever is higher is compare with S.R 18,000
Standard Rent 18,000
Which ever is lower is ERV 18,000
ActualRent(1,600 x 12) 19,200
Whichever is higher is GAV 19,200
Less:Municipal Taxes 1,000
Net Annual Value (NAV) 18,200
27.Computation of Income from House Property for P.Y.2019 -20
Rentalvalue (Let out House) ( Rs.)
Net Annual Value (NAV) 18,200
Deduction: u/s 24 1. S.D (30% of 18,200) 5,460
Incomefrom Let out House Property 12,740
Deemed Income from House Property
Unrealised rent recovered and allowed earlier deduction
(14,000-4,000) 10,000
Less: 1.S.D. (30% ofNAV) (30% of 10,000) 3,000 7,000
Incomefrom head House Property 19,740
Rentalvalue (Let out House) ( Rs.)
Net Annual Value (NAV) 18,200
Deduction: u/s 24 1. S.D (30% of 18,200) 5,460
Incomefrom Let out House Property 12,740
Deemed Income from House Property
Unrealised rent recovered and allowed earlier deduction
(14,000-4,000) 10,000
Less: 1.S.D. (30% ofNAV) (30% of 10,000) 3,000 7,000
Incomefrom head House Property 19,740
28. Mr. X has 3 House properties which he was uses for own residential Purpose:
HouseI( Rs.)HouseII( Rs.)HouseIII( Rs.)
MRV 40,000 60,000 80,000
FRV 50,000 70,000 65,000
StandardRent 60,000 84,000 72,000
Municipal taxes 4,000 6,000 9,000
Expenseson repairs 2,000 4,000 3,000
Insurance Premium 1,000 2,500 3,000
Yearin which loan taken for Purchase of House
1998 2002 2007
Interest on loan paid during the P.Y2019-20
35,000 40,000 25,000
Find out income from H.P as tax expert
HouseI( Rs.)HouseII( Rs.)HouseIII( Rs.)
MRV 40,000 60,000 80,000
FRV 50,000 70,000 65,000
StandardRent 60,000 84,000 72,000
Municipal taxes 4,000 6,000 9,000
Expenseson repairs 2,000 4,000 3,000
Insurance Premium 1,000 2,500 3,000
Yearin which loan taken for Purchase of House
1998 2002 2007
Interest on loan paid during the P.Y2019-20
35,000 40,000 25,000
Find out income from H.P as tax expert
28. Computation of Income from House Property
Assesseeisallowedthebenefitofself-occupancy(where
theNAVisNIL)incasetworesidentialhousesandother
Houseorhousesaretreatedasletout(Deemed tobelet
out)houseorhouses.Twohousetreatedasself-occupied
andwhichistobetreatedasLet-out.Firstofallletall
thehousesbetreatedasself-occupiedones
All3 houses treated as Self-occupied House1House 2 House3
NetAnnual Value –NAV NIL NIL NIL
Deduction:u/s 24
1.S.D.( 30% of NAV) NIL NIL NIL
2. Intereston loan (30,000)(40,000)(25,000)
Loss from HouseProperty (30,000)(40,000)(25,000)
Assesseeisallowedthebenefitofself-occupancy(where
theNAVisNIL)incasetworesidentialhousesandother
Houseorhousesaretreatedasletout(Deemed tobelet
out)houseorhouses.Twohousetreatedasself-occupied
andwhichistobetreatedasLet-out.Firstofallletall
thehousesbetreatedasself-occupiedones
All3 houses treated as Self-occupied House1House 2 House3
NetAnnual Value –NAV NIL NIL NIL
Deduction:u/s 24
1.S.D.( 30% of NAV) NIL NIL NIL
2. Intereston loan (30,000)(40,000)(25,000)
Loss from HouseProperty (30,000)(40,000)(25,000)
28. Computation of Income from House Property of Mr. X for the A.Y.2020 -21
Particulars (All3 Houses treated as Let out) HouseIHouseIIHouseIII
MRV 40,00060,00080,000
FRV 50,000 70,000 65,000
Whichever is Higher is Compared with S.R 50,000 70,000 80,000
StandardRent 60,000 84,000 72,000
Whichever is lower is ERV 50,000 70,000 72,000
GAV 50,00070,00072,000
Municipal taxes 4,000 6,000 9,000
NAV 46,000 64,000 63,000
Deduction:u/s 24 1.S.D( 30% of NAV) 13,80019,20018,900
2. Interest on borrowed money 35,000 40,000 25,000
Income / Loss from House Property (2,800) 4,80019,100
Particulars (All3 Houses treated as Let out) HouseIHouseIIHouseIII
MRV 40,00060,00080,000
FRV 50,000 70,000 65,000
Whichever is Higher is Compared with S.R 50,000 70,000 80,000
StandardRent 60,000 84,000 72,000
Whichever is lower is ERV 50,000 70,000 72,000
GAV 50,00070,00072,000
Municipal taxes 4,000 6,000 9,000
NAV 46,000 64,000 63,000
Deduction:u/s 24 1.S.D( 30% of NAV) 13,80019,20018,900
2. Interest on borrowed money 35,000 40,000 25,000
Income / Loss from House Property (2,800) 4,80019,100
28. Computation of Income from House Property of Mr. X for the A.Y.2020 -21
Particulars
OPTIONI (H1 &H2
SELF & H3 Deemed
to be Let-out)
OPTIONII (H1 &H3
SELF & H2 Deemed to
be Let-out)
OPTION III ( H2 &H3
SELF & H1 Deemed to
be Let-out)
HouseI -30,000 -30,000 -2,800
HouseII -40,000 +4,800 -40,000
HouseIII +19,100 -25,000 -25,000
Lossfrom H.P (50,900) (50,200) (67,800)
Since the loss underthe head of house property is maximum
under the option III. Hence X should opt for option III (House
2&3 Self-occupied and House 1 is Deemed to be Let-out).
Loss under the head of HP 67,800 shall be either setoff against
other income of current previous year as per rule or will have to
be carried forward to next 8 assessment years.
Particulars
OPTIONI (H1 &H2
SELF & H3 Deemed
to be Let-out)
OPTIONII (H1 &H3
SELF & H2 Deemed to
be Let-out)
OPTION III ( H2 &H3
SELF & H1 Deemed to
be Let-out)
HouseI -30,000 -30,000 -2,800
HouseII -40,000 +4,800 -40,000
HouseIII +19,100 -25,000 -25,000
Lossfrom H.P (50,900) (50,200) (67,800)
Since the loss underthe head of house property is maximum
under the option III. Hence X should opt for option III (House
2&3 Self-occupied and House 1 is Deemed to be Let-out).
Loss under the head of HP 67,800 shall be either setoff against
other income of current previous year as per rule or will have to
be carried forward to next 8 assessment years.
29. Mr.S.M.Krishnaowner of the big house consisting of 3 equal
Independent units. Unit 1 is Let out at a rent of Rs.8,000 p.m. Unit
II is being used in owner’s own business. Whereas Unit III is being
used for own residence. Other particulars of the house are as
follows. Rs.
Municipal Rental Value 1,50,000p.a.
Fair Rental Value 1,95,000p.a.
Standard Rent as per rent control act 1,86,000p.a
Municipal taxes 15,000p.a.
Repairs 12,000p.a.
Interest on borrowed money 60,000p.a
Unit I remained vacant for 2 months and one month rent could not
be realised from a tenant. Mr. Krishna’s Income from his business
without debiting any expenditure related to own business being
used in his own business is Rs.2,00,000
Determine Krishna’s income from house property and business for
the A.Y 2020-21.
Independent units. Unit 1 is Let out at a rent of Rs.8,000 p.m. Unit
II is being used in owner’s own business. Whereas Unit III is being
used for own residence. Other particulars of the house are as
follows. Rs.
Municipal Rental Value 1,50,000p.a.
Fair Rental Value 1,95,000p.a.
Standard Rent as per rent control act 1,86,000p.a
Municipal taxes 15,000p.a.
Repairs 12,000p.a.
Interest on borrowed money 60,000p.a
Unit I remained vacant for 2 months and one month rent could not
be realised from a tenant. Mr. Krishna’s Income from his business
without debiting any expenditure related to own business being
used in his own business is Rs.2,00,000
Determine Krishna’s income from house property and business for
the A.Y 2020-21.
29. Calculation of Income from House Property
Rentalvalue
OwnResidence Let out ( Rs.)OwnBusiness
MRV (1,50,000 x 1/3) 50,000
FRV (1,95,000 x 1/3) 65,000
Which everis Higher 65,000
StandardRent (1,86,000 x 1/3) 62,000
Whichever is lower is ERV 62,000
ActualRent –unrealised rent
(8,000 X 12 ) –(8,000 x 1) 88,000
Whichever is more is GAV 88,000
Less: Loss due to Vacancy 16,000
Gross AnnualValue –GAV NIL 72,000 NIL
Rentalvalue
OwnResidence Let out ( Rs.)OwnBusiness
MRV (1,50,000 x 1/3) 50,000
FRV (1,95,000 x 1/3) 65,000
Which everis Higher 65,000
StandardRent (1,86,000 x 1/3) 62,000
Whichever is lower is ERV 62,000
ActualRent –unrealised rent
(8,000 X 12 ) –(8,000 x 1) 88,000
Whichever is more is GAV 88,000
Less: Loss due to Vacancy 16,000
Gross AnnualValue –GAV NIL 72,000 NIL
29. Calculation of Income from House Property
Rentalvalue
OwnResidence Let out ( Rs.)OwnBusiness
Gross AnnualValue -GAV NIL 72,000 NIL
Less: M. Tax (15,000 x 1/3) 5,000
Net AnnualValue -NAV NIL 67,000 NIL
Deduction u/s 24
1. S.D (30% of67,000) --- 20,100 ---
2. Intereston loan
(60,000 x 1/3) 20,000 20,000 ---
Loss from House Property (20,000) 26,900 NIL
Total Loss from H.P 6,900
Rentalvalue
OwnResidence Let out ( Rs.)OwnBusiness
Gross AnnualValue -GAV NIL 72,000 NIL
Less: M. Tax (15,000 x 1/3) 5,000
Net AnnualValue -NAV NIL 67,000 NIL
Deduction u/s 24
1. S.D (30% of67,000) --- 20,100 ---
2. Intereston loan
(60,000 x 1/3) 20,000 20,000 ---
Loss from House Property (20,000) 26,900 NIL
Total Loss from H.P 6,900
29. Calculation of Income from House Property
BusinessIncome
OwnBusiness
Profit(given) 2,00,000
Less: Expenses related to Unit III
(not to be account earlier)
MunicipalTax (15,000 x 1/3) 5,000
Repairs(12,000 x 1/3) 4,000
Intereston borrowed money (60,000 x 1/3) 20,000 29,000
BusinessProfit 1,71,000
Income from House Property 6,900
Income from Business 1,71,000
GrossTotal Income 1,77,900
BusinessIncome
OwnBusiness
Profit(given) 2,00,000
Less: Expenses related to Unit III
(not to be account earlier)
MunicipalTax (15,000 x 1/3) 5,000
Repairs(12,000 x 1/3) 4,000
Intereston borrowed money (60,000 x 1/3) 20,000 29,000
BusinessProfit 1,71,000
Income from House Property 6,900
Income from Business 1,71,000
GrossTotal Income 1,77,900
30. Mr.Gulatiowns following 4 house properties. Other particulars are as follows:
Rentalvalue A (Self
occupied)
B (Self
occupied)
C (Let out to be
a Business House)
D (Being used for
Own Business)
MRV 20,000 50,000 70,000 45,000
StandardRent ---- ---- 72,000 48,000
FRV 26,000 60,000 80,000 50,000
Actual rent received ---- ---- 96,000 ----
Vacancy NIL NIL 1 Month NIL
UnrealisedRent ----- ----- 16,000 ----
MunicipalTax 2,000 2,000 6,000 4,000
Repairs 4,000 2,000 8,000 5,000
Interest on money borrowed
8,000 10,000 ---- ----
Rentalvalue A (Self
occupied)
B (Self
occupied)
C (Let out to be
a Business House)
D (Being used for
Own Business)
MRV 20,000 50,000 70,000 45,000
StandardRent ---- ---- 72,000 48,000
FRV 26,000 60,000 80,000 50,000
Actual rent received ---- ---- 96,000 ----
Vacancy NIL NIL 1 Month NIL
UnrealisedRent ----- ----- 16,000 ----
MunicipalTax 2,000 2,000 6,000 4,000
Repairs 4,000 2,000 8,000 5,000
Interest on money borrowed
8,000 10,000 ---- ----
Mr. Gulatiborrowed Rs.2,00,000 @12% for the construction of House
No. III on 1
st
October, 2015 and the house was completed in October
2017 and since then it is let out. A Part of the loan of Rs.50,000 was
repayedon 15
th
Oct, 2018. Determine the house property income of
Mr.Gulati.
House I & IISelf-occupied
NetAnnual Value –NAV NIL NIL
Deduction:u/s 24 1.S.D. ( 30% of NAV) NIL NIL
Less: 2. Intereston borrowed money (8,000) (10,000)
Loss from HouseProperty (8,000) (10,000)
No. III on 1
st
October, 2015 and the house was completed in October
2017 and since then it is let out. A Part of the loan of Rs.50,000 was
repayedon 15
th
Oct, 2018. Determine the house property income of
Mr.Gulati.
House I & IISelf-occupied
NetAnnual Value –NAV NIL NIL
Deduction:u/s 24 1.S.D. ( 30% of NAV) NIL NIL
Less: 2. Intereston borrowed money (8,000) (10,000)
Loss from HouseProperty (8,000) (10,000)
30.Computation of Income from House Property for P.Y.2019 -20
Rentalvalue (Let out House) ( Rs.)
Municipal Rent 70,000
FairRental Value 80,000
Which ever is higher is compare with S.R 80,000
Standard Rent 72,000
Which ever is lower is ERV 72,000
ActualRent(96,000 –Unrealised Rent 16,000) 80,000
Whichever is higher is GAV 80,000
Less:Loss due to vacancy (1 month Rs.8,000) 8,000
GrossAnnual Value (GAV) 72,000
Less:Municipal Taxes 6,000
Net Annual Value (NAV) 66,000
Rentalvalue (Let out House) ( Rs.)
Municipal Rent 70,000
FairRental Value 80,000
Which ever is higher is compare with S.R 80,000
Standard Rent 72,000
Which ever is lower is ERV 72,000
ActualRent(96,000 –Unrealised Rent 16,000) 80,000
Whichever is higher is GAV 80,000
Less:Loss due to vacancy (1 month Rs.8,000) 8,000
GrossAnnual Value (GAV) 72,000
Less:Municipal Taxes 6,000
Net Annual Value (NAV) 66,000
30.Computation of Income from House Property for P.Y.2019 -20
Rentalvalue (Let out House) ( Rs.)
Net Annual Value (NAV) 66,000
Deduction: u/s 24 1. S.D (30% of 66,000) 19,800
2. Interest on borrowed money
Previous Year 2019-20 (1,50,000 X 12%) 18,000
For PreconstructionPeriod 1-10-2015 to 31-3-2017
2015-2016 2,00,000 x 12% x 6/12 (for 6 months) 12,000
2016-2017 2,00,000 x 12% (for one year) 24,000
36,000
(36,000 x 1/5) 7,200 25,200
Incomefrom Let out House Property 21,000
Net Incomefrom H.P. (Self -18,000 + Let out 21,000) 3,000
Rentalvalue (Let out House) ( Rs.)
Net Annual Value (NAV) 66,000
Deduction: u/s 24 1. S.D (30% of 66,000) 19,800
2. Interest on borrowed money
Previous Year 2019-20 (1,50,000 X 12%) 18,000
For PreconstructionPeriod 1-10-2015 to 31-3-2017
2015-2016 2,00,000 x 12% x 6/12 (for 6 months) 12,000
2016-2017 2,00,000 x 12% (for one year) 24,000
36,000
(36,000 x 1/5) 7,200 25,200
Incomefrom Let out House Property 21,000
Net Incomefrom H.P. (Self -18,000 + Let out 21,000) 3,000
30. Computation of Income from House Property for A.Y.2020 -21
Rentalvalue ( Rs.)
2/3
rd
House(unit 1) under own construction
Net Annual Value (NAV) NIL
Less:Deduction: u/s 24 1. S.D (30% of NAV) NIL
Intereston loan (2/3 of Rs.7,500) 5,000
Loss from House Property (5,000)
Unit: 1 (2/3 own construction) Loss (5,000)
Unit: 2 (1/3 Let out) Income from House Property 21,300
Incomefrom House Property 16,300
Rentalvalue ( Rs.)
2/3
rd
House(unit 1) under own construction
Net Annual Value (NAV) NIL
Less:Deduction: u/s 24 1. S.D (30% of NAV) NIL
Intereston loan (2/3 of Rs.7,500) 5,000
Loss from House Property (5,000)
Unit: 1 (2/3 own construction) Loss (5,000)
Unit: 2 (1/3 Let out) Income from House Property 21,300
Incomefrom House Property 16,300
31. Mr.Ramachandran owns two house at chennai. Compute his income
from house property for the A.Y-2020-21.
Rentalvalue HouseA( Rs.) HouseB( Rs.)F
FRV 36,000p.a. 1,20,000p.a.
ActualRent 4,000p.m. 12,000p.m.
MRV 40,000p.a. 1,30,000p.a.
Standard Rent 38,000p.a. N.A.
Municipaltaxes 10%of MRV + 2% Municipal
Tax as sewerage cess
10%of MRV + 2% Municipal
Tax as sewerage cess
Actualrepairs expenses 4,000 10,000
GroundRent 2,000 2,500
Collection charges 500 1,200
Intereston Loan 12,000 48,000
Vacancy Period 3 months NIL
BonafideUnrealised Rent C.Y ---- 36,000
from house property for the A.Y-2020-21.
Rentalvalue HouseA( Rs.) HouseB( Rs.)F
FRV 36,000p.a. 1,20,000p.a.
ActualRent 4,000p.m. 12,000p.m.
MRV 40,000p.a. 1,30,000p.a.
Standard Rent 38,000p.a. N.A.
Municipaltaxes 10%of MRV + 2% Municipal
Tax as sewerage cess
10%of MRV + 2% Municipal
Tax as sewerage cess
Actualrepairs expenses 4,000 10,000
GroundRent 2,000 2,500
Collection charges 500 1,200
Intereston Loan 12,000 48,000
Vacancy Period 3 months NIL
BonafideUnrealised Rent C.Y ---- 36,000
Construction of House II Started on 1
st
November 2015 and
he borrowed Rs.4,00,000 @ 12% on 1
st
July 2016 for the
completion on construction. The house was completed on
30
th
Nov,2018 and since then it is let out.
st
November 2015 and
he borrowed Rs.4,00,000 @ 12% on 1
st
July 2016 for the
completion on construction. The house was completed on
30
th
Nov,2018 and since then it is let out.
31. Computation H.P Income of Mr.Ramachandran for the A.Y 2020-21.
HouseI( Rs.)House II ( Rs.)
FRV 36,000 1,20,000
MRV 40,000 1,30,000
Whichever is Higher Compare with SR 40,000 1,30,000
StandardRent 38,000 NIL
Whichever is less is ERV 38,000 1,30,000
Actual Rent A (4,000x12) B (12,000 X12 –12,000X3) 48,000 1,08,000
GAV(A or B which ever is higher) 48,000 1,30,000
Less:Loss due to vacancy 12,000 NIL
GrossAnnual Value –GAV 36,000 1,30,000
HouseI( Rs.)House II ( Rs.)
FRV 36,000 1,20,000
MRV 40,000 1,30,000
Whichever is Higher Compare with SR 40,000 1,30,000
StandardRent 38,000 NIL
Whichever is less is ERV 38,000 1,30,000
Actual Rent A (4,000x12) B (12,000 X12 –12,000X3) 48,000 1,08,000
GAV(A or B which ever is higher) 48,000 1,30,000
Less:Loss due to vacancy 12,000 NIL
GrossAnnual Value –GAV 36,000 1,30,000
GrossAnnual Value –GAV 36,0001,30,000
Less:Municipal tax (10% of MRV) 4,000 13,000
Seweragecess (2% of MT) 80 260
Net Annual Value -NAV 31,9201,16,740
Deduction:u/s 24 1.S.D ( 30% of NAV) 9,576 35,022
2. Intereston loan
a)P.Y 12,000 48,000
b)1/5 of PCI NIL 16,800
(4,00,000X 12% X 1year & 9 months)
12,000 64,800
Income from HouseProperty 10,344 16,918
Income from H.P (10,344+16,918) 27,262
Less:Municipal tax (10% of MRV) 4,000 13,000
Seweragecess (2% of MT) 80 260
Net Annual Value -NAV 31,9201,16,740
Deduction:u/s 24 1.S.D ( 30% of NAV) 9,576 35,022
2. Intereston loan
a)P.Y 12,000 48,000
b)1/5 of PCI NIL 16,800
(4,00,000X 12% X 1year & 9 months)
12,000 64,800
Income from HouseProperty 10,344 16,918
Income from H.P (10,344+16,918) 27,262
32. Following are the particulars of two house properties owned by A & B.
Particulars Mr.B (Let out 9m + self 3m) B Let out ( Rs.)A -Self( Rs.)
MRV (1,00,000 x 9/12) 75,000
FRV (72,000x 9/12) 54,000
Whichever is Higher (A)75,000
Actual Rent A (15,000x9) (B) 1,35,000
GAV(A or B which ever is higher) 1,35,000
Less: Loss due to vacancy (15,000 x 3) 45,000
Annual Rentalvalue (GAV after vacancy) 90,000
Less:Municipal taxes (paid) 8,000
NetAnnual Value –NAV 82,000 NIL
Particulars Mr.B (Let out 9m + self 3m) B Let out ( Rs.)A -Self( Rs.)
MRV (1,00,000 x 9/12) 75,000
FRV (72,000x 9/12) 54,000
Whichever is Higher (A)75,000
Actual Rent A (15,000x9) (B) 1,35,000
GAV(A or B which ever is higher) 1,35,000
Less: Loss due to vacancy (15,000 x 3) 45,000
Annual Rentalvalue (GAV after vacancy) 90,000
Less:Municipal taxes (paid) 8,000
NetAnnual Value –NAV 82,000 NIL
32. Following are the particulars of two house properties owned by A & B.
Particulars Mr.B (Let out 9m + self 3m) B -Let out ( Rs.)A Self( Rs.)
NetAnnual Value –NAV 82,000 NIL
Deduction:u/s 24 1.S.D( 30% of NAV) 24,600 NIL
2.Interestonloan (20L x 12% + 20L x 12% x1/5) 2,88,000
Loss from HouseProperty (2,30,600)
Mr.A (Mr.Aoccupied entire house–self)
2.Interest on loan
(12L x10% + 12L X10% X9/12 X 1/5)
1,38,00 or 2,00,000 w.e.l
1,38,000
TotalLoss from House Property
HouseA (2,30,600)
House B (1,38,000)
Particulars Mr.B (Let out 9m + self 3m) B -Let out ( Rs.)A Self( Rs.)
NetAnnual Value –NAV 82,000 NIL
Deduction:u/s 24 1.S.D( 30% of NAV) 24,600 NIL
2.Interestonloan (20L x 12% + 20L x 12% x1/5) 2,88,000
Loss from HouseProperty (2,30,600)
Mr.A (Mr.Aoccupied entire house–self)
2.Interest on loan
(12L x10% + 12L X10% X9/12 X 1/5)
1,38,00 or 2,00,000 w.e.l
1,38,000
TotalLoss from House Property
HouseA (2,30,600)
House B (1,38,000)
32. Following are the particulars of two house properties owned by A & B.
Particulars Mr.B (Let out 9m + self 3m) B Let out ( Rs.)A -Self( Rs.)
MRV (1,00,000 x 9/12) 75,000
FRV (72,000x 9/12) 54,000
Whichever is Higher (A)75,000
Actual Rent A (15,000x6) (B) 90,000
GAV(A or B which ever is higher) 90,000
Less:Municipal taxes (paid) 8,000
NetAnnual Value –NAV 82,000 NIL
Particulars Mr.B (Let out 9m + self 3m) B Let out ( Rs.)A -Self( Rs.)
MRV (1,00,000 x 9/12) 75,000
FRV (72,000x 9/12) 54,000
Whichever is Higher (A)75,000
Actual Rent A (15,000x6) (B) 90,000
GAV(A or B which ever is higher) 90,000
Less:Municipal taxes (paid) 8,000
NetAnnual Value –NAV 82,000 NIL
32. Following are the particulars of two house properties owned by A & B.
Particulars Mr.B (Let out 9m + self 3m) Let out ( Rs.)Self( Rs.)
MRV (1,00,000 x 9/12) 75,000
FRV (72,000x 9/12) 54,000
Whichever is Higher (A)75,000
Actual Rent A (15,000x9) (B) 1,35,000
GAV(A or B which ever is higher) 1,35,000
Less:Municipal taxes (paid) 8,000
NetAnnual Value –NAV 1,27,000 NIL
Deduction:u/s 24 1.S.D( 30% of NAV) 38,100 NIL
2.Intereston loan (20L x 12% + 20L x 12% x1/5) 2,88,000 30,000
Loss from HouseProperty (1,99,100) (30,000)
Mr.A (Mr. A occupied entire house –self ) (30,000)
Particulars Mr.B (Let out 9m + self 3m) Let out ( Rs.)Self( Rs.)
MRV (1,00,000 x 9/12) 75,000
FRV (72,000x 9/12) 54,000
Whichever is Higher (A)75,000
Actual Rent A (15,000x9) (B) 1,35,000
GAV(A or B which ever is higher) 1,35,000
Less:Municipal taxes (paid) 8,000
NetAnnual Value –NAV 1,27,000 NIL
Deduction:u/s 24 1.S.D( 30% of NAV) 38,100 NIL
2.Intereston loan (20L x 12% + 20L x 12% x1/5) 2,88,000 30,000
Loss from HouseProperty (1,99,100) (30,000)
Mr.A (Mr. A occupied entire house –self ) (30,000)
33.Compute Mr.R’sIncome from House Property for P.Y.2019 -20
Rentalvalue ( Rs.)
Gross Rental Income of the year (after deducting following items) 100,000
(i)Depreciation 24,500
(ii)Lift maintenance 7,500
(iii) Municipal tax (10%of MRV of Rs.1,50,000) 15,000
(iv)Vacancy 10,000
(v)Repairs 18,000
(vi)Pay of chowkidar 1,000
(vii)Bank commission 500
(viii)Legal expenses on recovery of rent 8,000
(ix)Salary of gardener 1,200
Rentalvalue ( Rs.)
Gross Rental Income of the year (after deducting following items) 100,000
(i)Depreciation 24,500
(ii)Lift maintenance 7,500
(iii) Municipal tax (10%of MRV of Rs.1,50,000) 15,000
(iv)Vacancy 10,000
(v)Repairs 18,000
(vi)Pay of chowkidar 1,000
(vii)Bank commission 500
(viii)Legal expenses on recovery of rent 8,000
(ix)Salary of gardener 1,200
33.Computation Mr.R’sIncome from H.P. for A.Y.2020 -21
Rentalvalue ( Rs.) ( Rs.)
Gross Rental Income of the year (after deducting
following items)
100,000
(i)Depreciation 24,500
(ii)Lift maintenance 7,500
(iii) Municipal tax (10%of MRV) 15,000
(iv)Vacancy 10,000
(v)Repairs 18,000
(vi)Pay of chowkidar 1,000
(vii)Bank commission 500
(viii)Legal expenses on recovery of rent 8,000
(ix)Salary of gardener 1,200 85,700
ActualRent 1,85,700
Rentalvalue ( Rs.) ( Rs.)
Gross Rental Income of the year (after deducting
following items)
100,000
(i)Depreciation 24,500
(ii)Lift maintenance 7,500
(iii) Municipal tax (10%of MRV) 15,000
(iv)Vacancy 10,000
(v)Repairs 18,000
(vi)Pay of chowkidar 1,000
(vii)Bank commission 500
(viii)Legal expenses on recovery of rent 8,000
(ix)Salary of gardener 1,200 85,700
ActualRent 1,85,700
33.Computation Mr.R’sIncome from H.P. for A.Y.2020 -21
Rentalvalue ( Rs.) ( Rs.)
Actual Rent 187,700
Less:Cost of facilities
(i)Lift maintenance 7,500
(ii)Pay of chowkidar 1,000
(iiiSalary of gardener 1,200 9,700
Real Rent 1,76,000
MunicipalRental Valur 1,50,000
Whichever is Higher is GAV 1,76,000
Less:Loss due to Vacancy 10,000
AnnualRental Value (GAV after vacancy ) 1,66,000
Rentalvalue ( Rs.) ( Rs.)
Actual Rent 187,700
Less:Cost of facilities
(i)Lift maintenance 7,500
(ii)Pay of chowkidar 1,000
(iiiSalary of gardener 1,200 9,700
Real Rent 1,76,000
MunicipalRental Valur 1,50,000
Whichever is Higher is GAV 1,76,000
Less:Loss due to Vacancy 10,000
AnnualRental Value (GAV after vacancy ) 1,66,000
33.Computation Mr.R’sIncome from H.P. for A.Y.2020 -21
Rentalvalue ( Rs.) ( Rs.)
AnnualRental Value (GAV after vacancy ) 1,66,000
Less:Municipal tax ( 10% of 1,50,000) 15,000
1,51,000
Less:Deduction u/s 24
1.Standard Deduction (30% of NAV) 45,300
2. Interest on loan NIL
Incomefrom House Property 1,05,700
Rentalvalue ( Rs.) ( Rs.)
AnnualRental Value (GAV after vacancy ) 1,66,000
Less:Municipal tax ( 10% of 1,50,000) 15,000
1,51,000
Less:Deduction u/s 24
1.Standard Deduction (30% of NAV) 45,300
2. Interest on loan NIL
Incomefrom House Property 1,05,700
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