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

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

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Which Option to be chosen

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.