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The hp income will be computed on cosolidated basis and then will be divided among the coowners.
further as per explanation to sec. 26 the property owners can claim a total of 4 units as self occupied.
however they have let out 5 units. hence effectively they can claim only 2 as self occupied.

as per details available there are two possible computations since one unit was vacant for 6 months.

that 6 month vacancy can be treated as self occupied or else simply as vacant.

it should be analysed which course will leat to lesser tax outflow.

it needs to be emphasised that the actual rental is lower than the municipal value. hence the hp income computed in both alternatives might differ.


now lets delve into each alternative

1. self occupied for 6 months
in this case the assessee can claim full amount of municipal tax from the GAV.

the gav will be 5 lacs
nav will be 4.5 lacs
from this take 30% standard deduction
assuming interest of 4 lacs is for the construction of all 7 units, take 1/7th portion of interest cost.


2. vacant for 6 months
in this case the gav will be 1.2 lacs
and the nav will be 0.7 lacs.



in my view the crux of the question was regarding treatment of 6 months of vacancy of one unit and i have explained it above.

with respect to remaining units i think you can solve it by yourself. nevertheless, i shall summarily explain you the computation.

for 2 self occupied units
nav is 0
take interest cost as deduction under sec. 24
and then the loss for those 2 units will be set off against income of 5 units.


for remaining 4 let out units
the gav will be 5 lacs
nav will be 4.5 lacs
take both deductions under sec. 24.

I hope this helps
if you arent clear about anything then kindly ask.

Net income for HP is a company's profit for the reporting period, calculated by taking revenues and profits and subtracting all costs and losses. Money managers and regular investors alike pay close attention to net income.

coreball

Thanks for the info

uno online