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 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

 

 

 

 

  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 .
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