Income Tax Calculation

Computation of Income From House Property of Self Occupied and Let-out Property

Click here for provisions of Income From House Property Under the Income Tax ACT, 1961 and for details of steps for computation of Income From House Property

(A) Income from Self-Occupied Property
Interest Paid / Accrued on Housing Loan (Current year's interest plus 1/5th of interest pertaining to pre-construction period)
2. Income from Self-occupied House Property
(B) Income from Let-out Property
1. Annual Letable Value / Rent Received or Receivable (if let out for whole of the year, lower if let out for part of the year)
2. Less: Municipal Taxes Paid During the Year
3. Less: Unrealized Rent
4. Net Annual Value (1-(2+3))
5. Less: Deductions from Net Annual Value
i. Standard Deduction @ 30% of Net Annual Value
ii. Interest on Housing Loan (Current year's interest plus 1/5th of interest pertaining to pre-construction period)
6 Income from Let-out House Property
(C) Total Income from House Property (A + B) (Self Occupied & Let-out House Property)