How to Compute "Income From House Property"
Friends, Assessee has many questions regarding calculation of Income from House Property. I mean to say what is expected rent, standard deduction, interest on borrowed capital etc. Standard formula for calculation of income from house property is given below :-
1. Gross annual value i.e. expected rent/actual rent received or receivable, Rs. ___________
whichever is higher. However, in case of vacancy, expected rent or
actual rent received or receivable, whichever i lower.
(a) The amount of rent which could not be realized Rs.____
(b) Taxes actually paid and borne by owner to local authority Rs.____ Rs. ___________
Net annual value (NAV) Rs. ____________
3. Less:- Deduction allowed u/s 24
(a) Standard deduction @ 30% of NAV Rs.____
(b) Interset on borrowed capital [Section 24(1)(vi)] Rs.____
Total Rs. ____________
4. Income Chargeable under the head "Income from House Property" Rs. ____________