How to calculate IFHP if the property was let out but was vacant throughout the P.Y.
For Eg. A house property having a municipal value of Rs.5 lacs, fair rent Rs. 6 lacs was intended to let out to tenants. Unfortunately during the P.Y. there was no tenant for this house property. Municipal tax is Rs 5,000 ( of which Rs 1,200 is payable). Interest paid on loan taken for purchase of property is Rs 1,79,000. What is the IFHP?
It shall be deemed to be let out FOR ENTIRE PERIOD, [Benefit u/ 23(c) shall not be admissible as property was vacant for entire previous year]
Municipal value or fair rent (whichever is higher) [GAV] 600 K
Municipal taxes paid (3.8 K)
NAV = 596.2 K
Deduction u/s 24
[u/s 24(a)] 30% of 596.2K (178.6 K)
[u/s 24(b)Interest deduction [no limit since deemed to be let out] (179 K)
Income from house property 238.6K
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