Particulars Amount

(Rs)

Gross Annual value 2,40,000

Less: Municipal Taxes 20,000

(It is deductible when it is born by the owner and actually paid by him during the
year. )

Net Annual value 2,20,000

Less: Deduction U/s 24

(i)Standard Deduction @ 30% (Section 24(a)) 66,000

(ii)Interest on borrowed Capital (Section 24(b)) 10,000

Income from House Property 1,44,000

Income from House Property for the Financial Year 2019-20

Actual Rent – 20,000 p/m

Fair Rent – 18,000 p/m
Municipal Rent – 16,000 p/m
Loan taken for House Property Renovation - 1,00,000 for 1 year @ 10 percent
interest
Municipal Tax – 20,000

Total Income from House Property on which he must pay Tax – 1,44,000