Matter of calculation

This query is : Resolved

Guest

Guest (Querist)

16 August 2012 Good evening to all experts,
I want to know calculation of house property. My employee. Take a home loan amount is 15 lakh.his monthly emi is 30000 with interest.he give his house for rent monthly rent is 7000 per month.please tell me about calculation of it.he lived in kashipur ( uttarakhand).because I have no idea about gav and municipal value. Please help.

Pankaj Gupta

Pankaj Gupta (Expert)
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16 August 2012 Pls provide the amount of annual interest paid by him on such loan. as deduction of interest will be given instead of Emi

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Guest

Guest (Querist)

16 August 2012 ANNUAL INTEREST COULD BE APPROX 80000. PLEASE SIR HELP ME IN THIS REGARD

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Guest

Guest (Querist)

16 August 2012 SIR WHAT HAPPEN IT VERY URGENT 4 ME SIR

Pankaj Gupta

Pankaj Gupta (Expert)
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16 August 2012 The below calculation is done considering that it is 100% rented house and is not used for the purpose of residese of assesse.
INCOME CAN BE CALCULATED BY THE BELOW MENTIONED PROCEDURE:-

Annual rent received XXX
Less:Muncipal tax paid (XXX)
-----------
Net Annual Value(NAV) XXX
Less:Deduction u/s 24
Standard deduction @30%of NAV (XXX)
Interest paid on Loan* (XXX)
-----------
Total income from house property XXX

*Total deduction of interest will be of 100% of interest of current year and 1/5th of pre construction period.

Pankaj Gupta

Pankaj Gupta (Expert)
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16 August 2012 But it is recommended to you to confirm the muncipal value of your locality. If not then confirm the fair rentable value of similar house in similar locality.
If such fair value or muncipal value is above the actual rent received then such muncipal value or fair rent should be considered.