Income from House Property

Sec – 22 Charging Sec. - Income will be taxable under

house property if following condition satisfied :-
(1) Annual value.
(2) Assessee must be owner of house
(3) House property is not used for Business or
profession of Assessee.
(4) Land and Building appurtenant thereto.
Sec. 23(1)/(2)/(3)
Calculation of Income from House property
PARTICULARS AMT
Mancipal value (M.V.) XX (H)
Fair rent (FR) XX

XX
Standard Rent (SR) XX (L)

Expected Rent (ER) XX

Actual Rent Recived (ARR) XX H

Gross Annual value (GAV) XX

(-) Municipal Tax Paid “by owner” (XX)
Net annual value (NAV) XX

(-) Deduction:-
24 (a) 30% of NAV (XX)
24 (b) Interest on Loan (XX)
I.H.P. XX
Add: Recovery of unrealized Rent (70%) XX
Arrear of Rent (70%) XX

Taxable Income from H.P. XX

NOTE :-
(1) If “A” has 2 or more houses then he has option to
choose 1 house as Self occupied whose NAV will
be Nil.
(2) If self occupied house is let out even for a single
day then that house will be treated as let out
throughout the year.
(3) Actual Rent Recived (ARR)
Particular Amount
Actual Rent Recivable XX
(-) Rent of vacant period (XX)
(-) Unrealized Rent (XX)

XXX
Sec. – 24
Deduction

24(a): Statutory Deduction 24(b)Interest on Loan

30% of NAV
Note- No further deduction of:- self letout
occupied house
house
• Insurance Loan is On or Whole
• Lighting taken after amount
• Repairs before 1.4.99 of intere
• Maintainance 1.4.99 -st will
• Law charges upto be allow
• white wash upto rs -ed as
• Ground Rent Rs. 30000 2 Lakh
deduction
Note:-
1. Even if Loan is taken
≥ 1.4.99 for following purpose then deduction of
interest is restricted up to Rs. 30000.
. Repair
.Renovation
.Re-construction

Deduction of interest is subject to:-

1
th of prior period (+) whole amount of current year
5
interest.

Meaning of Prior Period:

Date of Loan se start hoga and following date par end
hoga:-
(i) jis P.Y. me Ghar bana thik usse pahle ki 31.3
(ii) Date of Repayment of Loan
W.E. Earlier
Post period/Financial year/ P.Y. = always one year (1.4.22
to 31.3.23)

Sec.- 25 AA :- if loan is taken for house property from

outside India then at the time of payment of interest TDS
is not deducted then deduction of interest will not
allowed.
Sec.- 26 Co-ownership :- if there are 2 or more owner of
house, interest will be seen separately for each Co-
owner.

Sec.- 27 :- Deemed owner.only theory.