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 250000, FR 200000, SR is 210000
Therefore ER will be 210000
Step 2: Calculation of GAV:
GAV is higher of ER or AR
ER is 210000
If an owner of house property could not realise rent from the tenant, it will not be considered as income. So unrealised rent of 20000 shall be deducted from the actual
So Actual rent 20000*10-20000= 180000
Further if actual rent is less than expected rent beacuse of vacancy then GAV will be actual rent.
Therefore GAV is 180000.
Step 3: NAV=GAV-Municipal Taxes Paid
180000-20000= 160000
Step 4: NAV less Deductions under Section 24....
NAV= 160000
Less: Deduction @30%= 48000
Less; Interest= 65000
Less; preconstruction interest=0
Therefore income from house property is 160000-48000-65000= 47000
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