House rent income only tax liability

its 

Annual Value                                                  2,40,000

Less: Municipal tax paid (i.e Share)                   xxxx

Net annual value                                              2,40,000

Less: Standard Deduction   @ 30%                (72000)

Less: Interest Paid on borrwed capital (loan)

income from HP                                               1,68,000

Tax liability on above income for the AY 2011-12

Income  Upto 1,90,000   Nil

So no Tax liability in the above case.

One typographic error is there in the above calculation. Std. deduction would be 72000 i.e. 240000*30%. so there will not be any tax liability.

Originally posted by : CA Neil Ganatra
	One typographic error is there in the above calculation. Std. deduction would be 72000 i.e. 240000*30%. so there will not be any tax liability.

Agreed

Thanks a lot for explaining it to me.

Regards

ok for my side

Hi Friends,

Here Municipal tax means the property tax that we paid for that property, isn't it? OR is this some other type of tax?

Regards,

Vivek S