Step 4A Treatment of Standard Deduction

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

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Q1

Calculate income from house property 

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

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

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Q3

--answer--

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