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
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 |
View answer
Since person owns one house which is self occupied,we can take NAV=0 directly
| NAV | 0 |
| Less | |
| Standard Deduction | 0 |
| (30%*0) | |
| Interest on Housing Loan | |
| 1500000*12%=180000 | |
| Max Limit for Self Occupied=200000 | -180000 |
| Income (Loss) from House Property | -180000 |
It is assumed all 4 conditions satisfied,hence max 200000 deduction
--endanswer--
Q2
Suppose in Q1,Housing loan taken was 2000000 at 12% p.a.
--answer--
| NAV | 0 |
| Less | |
| Standard Deduction | 0 |
| (30%*0) | |
| Interest on Housing Loan | |
| 2000000*12%=240000 | |
| Max Limit for Self Occupied=200000 | -200000 |
| Income (Loss) from House Property | -200000 |
--endanswer--