Calculation of House Property income

hai friend,

Generally  GROSS ANNUAL VALUE   of  property is  Fair rental value.In the case of   MV is availble it shall be the gross annaul value. in the given case the property is part of the year self occupied &part of the year let out 

Actual rent received is 1500*6=9000

it should be comapred with MV and which ever is higher is the annaul value .so the  GAV the property in the given problem is   18000

COMPUTATION

GROSSS ANNUAL VALUE :                                             18000

-M.TAXES PAID DURING THE YEAR:                                 (1125)    

NET ANNUAL VALUE:                                                             16875

DEDUCTIONS u/s 24:

(a) STANDARD DEDUCTION:30%OF NAV:                           (5062)

(b) INTEREST EXPENSE:                                                           (7200)

iNCOME FROM HOUSE PROPERTY:                                       4610

  NOTE                         :                        NO OTHER DEDUCTION ARE ALLOWED UNDER THIS HEAD

INT DEDUCTION    7200 IS FULLY  ALLOWED SINCE IT IS TAKEN THAT THE ABOVE PROPERTY IS LET OUT DURING THE PY.

Total interest is allowed for let out property. There is no limit on interest deduction.

For self occupied property there is a limit up to 1,50,000/- i.e., interest amount for the purose of construction. for repairs,renewel there is a limit upto 30,000 only.house loan repayment can be claimed

as deduction under section 80c.