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Income from house property

173 views 5 replies
suppose actual rent received is 20000/- then in BOA, we record actual rent and pass journal entry as below
cash/bank a/c dr 20000
To rent income 20000

But as per income tax act, valuation of rent of house property is made differently and suppose it is 25000/-

then it is called difference between income tax and account....

is it correct??
Replies (5)
You should value your income from house property as income tax rules
It means I should value and record in BOA as per income tax
Yes as per income tax valuation is different as
The municipal value and The standard rent of your property should be taken whichever us higher but subject to standard rent
then your actual rent rent received should be valued
Gross annual value should get produced from which municipal tax should be deducted (NAV)
And standard deduction of 30% of NAV u/s 24(a) should be deducted
and if loan has been taken then such interest shall be deducted upto 200000 rupees
Then your actual income from house property shall be calculated
Ok sir...perfect...got it...thank you so much
Ur welcome


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