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

NAV xx
Less xx
Standard Deduction 30% xx
Income from House Property xx




NAV 400000
Repairs done for house 30000
Ground Rent Paid 5000

Calculate income from house property 


NAV 400000
Standard Deduction 30% -120000
Income from House Property 280000

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



Solve last question assuming no repairs done or ground rent paid



Same as last 

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




Municipal valuation  1000000
Fair Rent  900000
Standard Rent  800000
Actual Rent 840000
Unrealized Rent 70000
Municipal taxes due 10000
(Paid Rs 8000)  
Ground Rent 7000
Insurance premium 3000
Repair done 20000
Calculate income from house property 


A Municipal valuation  1000000
B Fair Rent  900000
C Higher of Municipal Value or Fair Rent 1000000
D Standard Rent 800000
E Expected Rent (Lower of C or D) 800000
F Actual Rent 840000
E GAV 840000
  (Higher of Expected or Actual Rent)  
F Municipal Taxes Paid -8000
G Unearned Rent(40000*1) -70000
H NAV 762000
I Standard Deduction -228600
J Interest on Housing Loan  
K income from House Property 533400




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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.