Calculation of income from house property
Step 1: Calculation of Expected Rent
Expected Rent is higher of MV and FR but restricted to SR
MV is 130000, FR 110000, SR is 120000
Therefore ER will be 12000
Step 2: Calculation of GAV:
GAV is higher of ER or AR
ER is 120000
If an owner of house property could not realise rent from the tenant, it will not be considered as income. So unrealised rent of 11000 shall be deducted from the actual
So Actual rent 11000*12-11000= 121000
Unrealized rent of 11000 will be taxed when you received from a tenant and a standard deduction of 30% will be allowed in the year of receipt.
Therefore GAV is 121000
Step 3: NAV=GAV-Municipal Taxes Paid
Step 4: NAV less Deductions under Section 24....
Less: Deduction @30%= 32400
Less; Interest= 40000
Less; pre-construction interest=0
Therefore income from house property is 121000-32400-40000=35600
Please mark your satisfactory level...
My Dear ,
I thank you for marking the answer as satisfactory.
I have noted.
It will be very nice and helpful to our other members (and the answerer too) if you mark your satisfaction level on the grade scale below.
Please feel free to mark any point. I don't share it with anyone. I use it for doing my internal calculations only. I use these calculations to evaluate the service performance of the relevant virtuoso.
Here is the grade scale:
Anu, Thakurani's bestie