ONE PROPERTY DEEMED SELF OCCUPIED

+

ALL OTHER PROPERTIES DEEMED LET OUT


Only one property can be deeded to be Self Occupied and its

NAV   = 0.

+

Maximum interest  deduction   = 30000/200000

   

For other property , NAV is not zero as it is deemed let-out

Its NAV is calculated taking fair Rent and municipal value .

Interest deduction is also allowed without limit .

 

Note:-

Any one of the two house can be taken as self occupied by the assessee

(Whichever is most beneficial is to be chosen)


Example 1

Particulars House 1 House 2
Municipal valuation  1000000 500000
Fair Rent  800000 600000
Standard Rent  900000 700000
Actual Rent 0 0
(Both House were self occupied through out the year)    
Municipal taxes paid 3000 5000
Interest on Housing Loan for Construction 250000 160000

Since person owns two houses which are self occupied,we can take either of them as Self Occupied

 

Option 1 :-   House 1 deemed to be self occupied ,House 2 deemed let out

View

 

  Option 2 :-   House 1 deemed to be Letout ,House 2 Self Occupied

View

 

Which Option to be chosen

View
  1. Income Tax
  2. Income From House Property
Ask Download

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 .
  • Ankita Singh's image

    An assessee recovers rs.60000 as outstanding rent . He has no other income  what will be taxable amount?

     

    View answer
  • Amrinder Singh's image
    House loan principle amount 1yr   15000
    Interest paid                                        75000

    Then lose of property  (-) 75000
    And u/s 80c  claim            15000
    ????
    View answer
Jail