House Property

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This discussion clarifies the calculation of house property income for the Assessment Year 2020-21, particularly concerning the treatment of two properties. While an assessee can claim two properties as self-occupied, meaning their Net Annual Value (NAV) is nil, this only applies if both properties are genuinely for personal use and vacant. If a second property is actually let out, it must be treated as a rented property, and its NAV cannot be considered nil, even if you could technically claim it as self-occupied under the amended laws.

maneesh

maneesh (Querist)
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17 August 2020 Hello Team,
I have a little bit confused about the calculation of HP income related to AY 2020-21. Currently, I have two house property, one is used for self residence purpose and the second one is let out.
As per the latest amendment in I.T Laws, the assessee has the right to claim two house property as self -occupied consequently the value i.e. NAV of both houses should be taken as Nil irrespective of fact that the second house had given on rent. Further, as per my understanding, I cant able to take any benefit of section 24a & b except interest on housing loan i.e. INR 2,00,000.
My query is Can I considered second home NAV as NIL or considered rent as NAV particularly in respect of AY 2020-21?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 August 2020 The second house is to be considered as let out property.

CA Raj Doshi

CA Raj Doshi (Expert)
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18 August 2020 Those property which are actually let out cannot be considered as self occupied. Total 2 properties comprising Only of personal use and vacant properties can be considered as self occupied.

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