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For One Self Occupied Property,

NAV=0

+

Deduction for Interest of 30000/200000

 Normal Cases

   
NAV 0
Less  
Deductions from House Property  
Standard Deduction 0
Interest on Housing Loan 30000
income from House Property (Loss) (30000)
   

 

 If certain conditions satisfied,higher deduction of 200000

   
NAV 0
Less  
Deductions from House Property  
Standard Deduction 0
Interest on Housing Loan 200000
income from House Property (Loss) (200000)

 

 

 IMPORTANT POINTS

If the property is self occupied then  its NAV (net assets value) will deemed to be zero

This exemption is only available if the property is not let out during any part of the year minus any benefit derived from it .

If the assessee has more than 1 house which is self occupied, then he can choose only one such house to claim this exemption.

The assesse can also claim deduction  of interest on housing loan of Rs.30000 / 200000 as explained below .

 

 

Conditions to be fulfilled to claim Higher Deduction

If all the below condition satisfied,then 2,00,000 deduction.(earlier limit was 150000)

1.Property is acquired after 1/4/1999

+

Loan is for construction/Acquisition of House(Not repair/Renovation)

+

Certificate received from person who has received the interest (bank)

+

Construction completed within 3 years  5 year from date of loan (New Amendment)

 

In any of the condition not satisfied,then only Rs 30000 deduction

Example:-Loan is for repair or renovation or Certificate not received

 

Comparison of Interest

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Q1

   
Municipal valuation  300000
Fair Rent  400000
Standard Rent  360000
Actual Rent 0
(House was self occupied through out the year)  
Municipal taxes due 15000
(Paid Rs 9000)  
Insurance premium 3000
Repair done 20000
Housing loan taken for Construction of House @ 12% p.a 1500000
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  1. Income Tax
  2. Income From House Property
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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 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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