How to calculate Income from Property

  Gross  Annual value                                            ------

  Less  - Municipal   Tax  atualy  paid                    -------

  Less  - Deductions  Under  section 24                -------

              Net  taxable income                                -------

           

Thank you Mr. Prasad, can I claim any standard deduction

yes ,  standard deduction  under section 24  of the income tax act 1961 , 30% of  the annual  value . 

30% of NAV standard deduction U/S24(a) in case of rental property ( no deduction in case NAV is nill) interest on borrowed capital as deduction u/s24(b)

first of all gross annual value required to be computed

compare the fair market rental value and municipal valuation - > 1

higher of (1) has to be compared with standard rent value -> 2

lower of (2) has to be compared with actual rent received - > 3

higher of (3) is the gross annual value.
gross annual value is reduced by municipal taxes paid to arrive at net annual value

net annual value is reduced by 30% of standard deduction on NAV and interest on borrowed capital to arrive income from house property

GAV OF SELF OCCUPIED HOUSE IS NIL. U CAN CLAIM ONLY INTT. PAID TO BANK/FI UPTO 2LAC