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How to calculate income/loss from house property

Sanjay (AM) (32 Points)

07 August 2011

Hi,

Thanks for reading this post. I need expert's help to calculate income/loss from house property.

I have one let-out property and myself living in different town. I am paying housing loan interest for the same property.

Annual Interest Paid - 400000

Annual Actual Rent Recieved - 76500

Can you please share the formula to calculate actual loss from house property that I have to mention in my ITR?

Many Thanks

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11 Replies

Sumit Grover (Chartered Accountant ) (3652 Points)
Replied 07 August 2011

in case of let out property, full deduction of interest amount is allowed

so income from house property will be----

Actual rent received --- 76,500

(-) standard deduction(30%)--- (22,950)

(-) interest paid ---(4,00,000)

income from house property--(346450)----LOSS

plz correct me if m wrng

1 Like

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 07 August 2011

yes CA Sumit you are right...

Rent Received (Net Value) 76500

Less:standard deduction (22950)

Less:Interest u/S 24(b) (400000)

Income from Property (346450)

Agree with CA Sumit

Sumit Grover (Chartered Accountant ) (3652 Points)
Replied 07 August 2011

siddharth, NAv is calculated as follows:

GAV ---- say amount X

(-) municipal taxes paid----say amount y

NAV -----

and its 4m NAV, v deduct standard deduction

plz correct me if m wrng

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 07 August 2011

agree with you..but i mention here directly rent received instead of GAV because there are nothing other than rent .... (other steps are not come across so i mention directly as rent received)...

k???

Sumit Grover (Chartered Accountant ) (3652 Points)
Replied 07 August 2011

actually, u mentioned d word---NAV, i was gvng clarification about dat......

coz NAV me se hi dono-- std deduction and intt. deduct karte hain

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 07 August 2011

kk.. i got you..sorry it was by mistake... sorry sorryy...

and thank you for answering...

ROHIT CHATURVEDI (CA Final Student ) (2298 Points)
Replied 07 August 2011

Originally posted by : CA SUMIT GROVER
	in case of let out property, full deduction of interest amount is allowed so income from house property will be---- Actual rent received --- 76,500 (-) standard deduction(30%)--- (22,950) (-) interest paid ---(4,00,000) income from house property--(346450)----LOSS plz correct me if m wrng

(Guest)

Originally posted by : CA SUMIT GROVER
	in case of let out property, full deduction of interest amount is allowed so income from house property will be---- Actual rent received --- 76,500 (-) standard deduction(30%)--- (22,950) (-) interest paid ---(4,00,000) income from house property--(346450)----LOSS plz correct me if m wrng

Completely agree with this reply

saurabh (PM) (21 Points)
Replied 25 July 2013

Hello all,

i know this is an old thread, but has information exactly on lines of what i need. i have 2 questions.

Loss on income property:

The property tax, can i deduct that as well while computing income/loss from property.
I am also learning that the total amount of interest which is being paid can be claimed as well. till now, i have only claimed max up 1,50,000. me and my wife are co-owners hence i claim 1,50,000 on both sides. assuming i pay 3,50,000 in interest, can i claim the complete 1,75,000 on both of us.
thirdly, if i have filed last year with 1,50,000 and without claiming property tax, is it recommended or possible to file for correction. it may result in some tax refund.

response on this will be appreicated.