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Example of Such Property are

  1. 2 Floors of same building . One self occupied One Rented
  2. Front portion self occupied . Back portion Rented .

 

How to Compute Income from House Property

  • Both are considered separate units
  • and income from house property is calculated separately for both .
  • Fair Rent, municipal value  municipal taxes are also divided  between different units

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QUESTION 

Compute Income from House Property If Half the property Rented at 5000 pm.

Balance half self occupied  

  
Municipal value100000
Fair Rent80000
Standard Rent90000
 Municipal taxes paid10000

 

--answer--

 

We will compute Income from house Property for both portion separately

Income from Self Occupied portion 

NAV=0 for one self occupied property

 ParticularsSelf Occupied Portion
A Municipal value50000
BFair Rent40000
CHigher of Municipal Value or Fair Rent0
DStandard Rent0
EExpected Rent (Lower of C or D0
FActual Rent0
GGAV0
 (Higher of Expected or Actual Rent) 
 Less 
HMunicipal Taxes Paid 
IUnearned Rent 
JNAV0
 Less 
KStandard Deduction 30%0
LInterest on Housing Loan0
Mincome from House Property0

 

Income from Rented Portion

 ParticularsRented Portion
A Municipal value50000
BFair Rent40000
CHigher of Municipal Value or Fair Rent50000
DStandard Rent45000
EExpected Rent (Lower of C or D)45000
FActual Rent60000
GGAV60000
 (Higher of Expected or Actual Rent) 
 Less 
HMunicipal Taxes Paid5000
IUnearned Rent0
JNAV55000
 Less 
KStandard Deduction 30%16500
LInterest on Housing Loan0
Mincome from House Property38500

 

Total Income from House Property= 0+38500=38500

 

 

 

 

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.
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