### 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

 NAV xx Less xx Standard Deduction 30% xx Income from House Property xx

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Q1

 NAV 400000 Repairs done for house 30000 Ground Rent Paid 5000

Calculate income from house property

 NAV 400000 LESS Standard Deduction 30% -120000 Income from House Property 280000

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

Q2

Solve last question assuming no repairs done or ground rent paid

NAV=400000

Same as last

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

Q3

 Municipal valuation 1000000 Fair Rent 900000 Standard Rent 800000 Actual Rent 840000 (70000*12) Unrealized Rent 70000 Municipal taxes due 10000 (Paid Rs 8000) Ground Rent 7000 Insurance premium 3000 Repair done 20000 Calculate income from house property

 A Municipal valuation 1000000 B Fair Rent 900000 C Higher of Municipal Value or Fair Rent 1000000 D Standard Rent 800000 E Expected Rent (Lower of C or D) 800000 F Actual Rent 840000 E GAV 840000 (Higher of Expected or Actual Rent) Less F Municipal Taxes Paid -8000 G Unearned Rent(40000*1) -70000 H NAV 762000 Less I Standard Deduction -228600 (30%*762000) J Interest on Housing Loan K income from House Property 533400