Self occupied and vacant property

The calaulation made by you is right. you also wait for other suggestions

No your calculation is not as per income tax provision. If you have only one property (as sepcified in query) , which was self occupied by you for 8 month during previous year and thereafter it remained vacant , because of your employment or some genuine reason, you stayed at a rented property.

In the given case your property will be deemed to be self occupied and Annual Value of the same will be NIL

As far as interest deduction is concern, there has been a ceiling of 1,50,000 in case of self occupied property ( Loan Taken on or after 1-4-99 and constructed within 3 years or acquired within 2 years from the date of loan)

Thus calculation will be as follows:

Net Annual Value(NAV)            :           NIL

(-)Std. Ded @ 30% of NAV      :            NIL

(-) Interest Paid 2.2lakh but

limited to 150000              :       150000

Income from HP                       :  (1,50,000)

The loss may be carried forward for 8 Assessment year and can be setoff against house property income only.

 Hope this will solve your purpose.

Mr Jha is right while there is no any other answer. 

thanks

Thanks Prabhakar, KK.

I have two property on my name. Assuming I let out the above property with loan for 8months at 10,000Rs/month rent and property remains vacant for 4months. Expected rent is 12,000Rs. Will the following calc be valid for Gross Annual Value:

1. Annual rent if let out for whole year = 10,000 X 12 = 120,000Rs

2. Loss due to vacany = 10,000 X 4 = 40,000Rs

3. Actual rent = annual rent - loss due to vacany = 120,000 - 40,000 = 80,000

Gross Annual Value (actual rent lower than expected rent only because of vacancy. So consider actual rent) = 80000 

Net Annual Value:    The Gross Annual Value above less Municipal tax (for 12months?)   ===> Is this correct?

Taxable income from property:

Net annual value - 30% deduction - total loan interest per section 24 (ie. 2.2Lakh)   ===> Is this correct?

The taxable income as negative can be adjusted against loss from property

In the second situation 

GAV                      = Rs 80,000/-

Less: Municipal Taxes  = Subtract if any

Net Annual Value =               80,000/-

Less :

Deduction u/s 24a @ 30%  =   (24,000)

Deduction u/s 24b =             = (2,20,000/-)

Loss from house property =  Rs 1,64,000/-

This loss can be set off from income from any other head in the current year and the remaining loss (after set off) can be carried forward for 8 subsequent years.

But for subsequent years, this loss can only be set off from income from house property.

You are not correct this time also 

GAV can be calculated are as follows

Standard Rent 12000*12= 144000/-

Less loss due to Vacancy 10000*4= 40000/-

Net 104000

Amt received 10000*8= 80000

higer of above 104000

Less Standard Deduction 31200

NAV =    72800

less Deduction u/s 24(b) 220000/-

loss carried forward 147200

Mr. Mukesh is correct

When Expected rent(ER) is greater than actual rent received(ARR) for the factor of  vacancy then you need to consider ER - RVP for calculation of GAV.

12000*12=144000  -  ER

10000*8=80000   -  ARR

10000*4=40000   -  RVP

Here ER > ARR, hence GAV=ER-RVP which comes to 144000-40000=104000.

Then you can calculate NAV, deductions etc.

Thanks Mukesh, Raghavender for the insights.

Please review if the following calc is correct.

Expected rent:12,000Rs   Actual Rent: 10,000Rs. Assume property let out for 4months. Remaining timeframe propety is vacant. Municipal tax: 27000Rs/year

Expected Rent: 12,000 x 12 = 144000Rs

Actual Rent Received: 10,000 x 4 = 40,000Rs

Loss due to vacancy: RVP: 10,000 x 8 = 80,000Rs

Here ER > ARR, hence GAV=ER-RVP  ie  GAV is 144000 - 80,000 = 64000Rs

Income from property Calc:

GAV = 64000

Municipal Tax: 27000

Net Annual Value(NAV) : 64000 - 27000 = 37000

30% Standard Deduction: 30% of NAV = 11100

Intrest against property: 220000

Taxable income from property: NAV - Standard Deduction - Interest = -194100Rs (loss)

Yes this calculation is correct.  

Hi, I have a query please help

I am staying in Delhi at a rented accomodation, and I have purchased a flat in Noida which is owned jointly by myself and my wife. We have also taken a joint loan, however the EMI is paid from my account to the bank.

Query:

1. Will the property in Noida will be treated as a self occupied property, i.e. annual value is nil.

2.  Can I claim deduction upto Rs.200,000 on interest component under section 24.

2. Can my wife also claim a deduction of interest upto Rs.200,000 u/s 24 as she is also a joint owner. She is not contributing in EMI payment, as it is going from my bank.

Thanks for help