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Standard Deduction-30% of NAV

  • The owner of the house incurs lots of expenses on  repairs or maintainance of house
  • For all these expenses, a flat deduction of 30% from NAV is allowed
  • Hence,Expenses of repair and maintainance or insurances premium are not allowed .
  • Note:– If such expenses are given in question ,We have to ignore them and to allow a flat 30% deduction on NAV 
  • Even if no expenses are incurred,still 30% deduction allowed

Assuming No Interest on Housing Loan

Standard Deduction 30%xx
Income from House Propertyxx




Repairs done for house30000
Ground Rent Paid5000

Calculate income from house property 


Standard Deduction 30%-120000
Income from House Property280000

No deduction for repairs and ground rent,only 30% deduction




Solve last question assuming no repairs done or ground rent paid



Same as last 

Even if no expenses are incurred,still 30% deduction allowed




Municipal valuation 1000000
Fair Rent 900000
Standard Rent 800000
Actual Rent840000
Unrealized Rent70000
Municipal taxes due10000
(Paid Rs 8000) 
Ground Rent7000
Insurance premium3000
Repair done20000
Calculate income from house property 


AMunicipal valuation 1000000
BFair Rent 900000
CHigher of Municipal Value or Fair Rent1000000
DStandard Rent800000
EExpected Rent (Lower of C or D)800000
FActual Rent840000
 (Higher of Expected or Actual Rent) 
FMunicipal Taxes Paid-8000
GUnearned Rent(40000*1)-70000
IStandard Deduction-228600
JInterest on Housing Loan 
Kincome from House Property533400




  1. Income Tax
  2. Income From House Property
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com.