House property SO/Vacant/Let Out

gross annual value is 7 lks 

vacany deduction         5 lks

     gav                             2 lks

30% standard

deduction              -----------------

                                   1.4   taxable income from house property

Originally posted by : ramsinghania
	gross annual value is 7 lks  vacany deduction         5 lks      gav                             2 lks 30% standard deduction              -----------------                                    1.4   taxable income from house property

Thank you for the quick reply!

I am not sot sure if I got your calculations correct.

The house was self occupied for 6 months (6 lakhs); vacant for 4 months (4 lakhs); rented out for 2 months (2 lakhs).

Annual value of part year self occupied property should consider the self occupied part also as let out. So, that makes the total income to be 12 lakhs; my confusion is from not knowing if we are allowed to deduct the rent for the vacant part form a property self occupied for part of the year. If yes, then the calculation should be:

Total rent  =  12 lakhs

Vacancy deduction = 4 lakhs

GAV = 12 - 4 = 8 lakhs

30% Standard Deduction = 2.4 lakhs

So, taxable income from house property = 5.6 lakhs.

If not, then the calculation should be:

Total rent  =  12 lakhs, which is also the GAV

30% Standard Deduction = 3.6 lakhs

So, taxable income from house property = 8.4 lakhs.

I am not sure if any one of my calculations above are correct. I could be missing something here. Would appreciate if you could cross-check your calculations.

Thanks!

calculate the   Expected rent: (i.e.- higher of Municipal value or fair rent, restricted to Standard Rent.) for whole the year. then proportionate the actual rent received for whole the year.

as mentioned in the question that actual rent is above the fair rent. so

GAV = 200000

Thank you both Ramsinghania and Anshu. The when I applied for TDS at reduced rate, the Assessing officer declined the above method of calculation. He wanted to to calculate actual income as if the house was rented out for the whole year. No allowance was given for self-occupied/vacant periods. He showed me the section in IT manual which describes this situation; don't remember the Section.  I guess the following is true:

WHERE THE HOUSE IS SELF OCCUPIED FOR A PART OF THE YEAR AND LET OUT FOR REMAINING PART OF THE YEAR, THEN INCOME FROM SUCH PROPERTY WILL BE COMPUTED AS IF THE PROPERTY IS LET OUT FOR THE ENTIRE YEAR.

However, what I am not sure is if I am allowed to deduct the rent for the vacant period from the ALV to arrive at GAV.