My friend owns a residential house, let out for a monthly rent of Rs 15,000. The fair rental value …
My friend owns a residential house, let out for a monthly rent of Rs 15,000. The fair rental value of property is Rs 1,50,000. The house was self-occupied by him from 1st January, 2018 to 31st March, 2018.He has taken a loan from bank of Rs 22 lacs for the construction of the property, and has repaid Rs 1,05,000 (including interest Rs 40,000) during the year. What will be his income from house property for the Assessment Year 2018-19?
Computation of Gross Annual Value:
- Fair Rent = Rs150,000.
- Actual rent received = 15000*9 = 135,000
- Annual value = 150,000*
* (Annual value is equal to Rs150,000 as it is higher of the 1 and 2. This proviso is applied in cases where property is self occupied (not vacant) for 3 months in the year)
Computation of Income from House Property:
Annual Value = 150,000
less: statutory deduction (@ 30%) = 45,000
less: deduction for interest = 40,000
