<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=539359806247306&ev=PageView&noscript=1"/>

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

  
NAVxx
Lessxx
Standard Deduction 30%xx
Income from House Propertyxx

 

 --------------------------------------------------------------------------------

Q1

  
NAV400000
Repairs done for house30000
Ground Rent Paid5000

Calculate income from house property 

--answer--

  
NAV400000
LESS 
Standard Deduction 30%-120000
Income from House Property280000

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

--endanswer--

 

Q2

Solve last question assuming no repairs done or ground rent paid

NAV=400000

--answer--

Same as last 

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

--endanswer--

 

Q3

  
Municipal valuation 1000000
Fair Rent 900000
Standard Rent 800000
Actual Rent840000
(70000*12) 
Unrealized Rent70000
Municipal taxes due10000
(Paid Rs 8000) 
Ground Rent7000
Insurance premium3000
Repair done20000
Calculate income from house property 

--answer--

   
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
EGAV840000
 (Higher of Expected or Actual Rent) 
 Less 
FMunicipal Taxes Paid-8000
GUnearned Rent(40000*1)-70000
HNAV762000
 Less 
IStandard Deduction-228600
 (30%*762000) 
JInterest on Housing Loan 
Kincome from House Property533400

--endanswer--

 

 

  1. Income Tax
  2. Income From House Property
Ask Download

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
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.
Jail