Example of Such Property are
- 2 Floors of same building . One self occupied One Rented
- 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 value | 100000 |
| Fair Rent | 80000 |
| Standard Rent | 90000 |
| Municipal taxes paid | 10000 |
--answer--
We will compute Income from house Property for both portion separately
Income from Self Occupied portion
NAV=0 for one self occupied property
| Particulars | Self Occupied Portion | |
| A | Municipal value | 50000 |
| B | Fair Rent | 40000 |
| C | Higher of Municipal Value or Fair Rent | 0 |
| D | Standard Rent | 0 |
| E | Expected Rent (Lower of C or D | 0 |
| F | Actual Rent | 0 |
| G | GAV | 0 |
| (Higher of Expected or Actual Rent) | ||
| Less | ||
| H | Municipal Taxes Paid | |
| I | Unearned Rent | |
| J | NAV | 0 |
| Less | ||
| K | Standard Deduction 30% | 0 |
| L | Interest on Housing Loan | 0 |
| M | income from House Property | 0 |
Income from Rented Portion
| Particulars | Rented Portion | |
| A | Municipal value | 50000 |
| B | Fair Rent | 40000 |
| C | Higher of Municipal Value or Fair Rent | 50000 |
| D | Standard Rent | 45000 |
| E | Expected Rent (Lower of C or D) | 45000 |
| F | Actual Rent | 60000 |
| G | GAV | 60000 |
| (Higher of Expected or Actual Rent) | ||
| Less | ||
| H | Municipal Taxes Paid | 5000 |
| I | Unearned Rent | 0 |
| J | NAV | 55000 |
| Less | ||
| K | Standard Deduction 30% | 16500 |
| L | Interest on Housing Loan | 0 |
| M | income from House Property | 38500 |
Total Income from House Property= 0+38500=38500
