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How to calculate Income from Property

Jatin (Accountant) (3479 Points)

12 August 2018

How to calculate taxable rental income from property

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prasad Nilugal ( GST Practitioner & Accounts ) (14546 Points)
Replied 12 August 2018

Gross Annual value ------

Less - Municipal Tax atualy paid -------

Less - Deductions Under section 24 -------

Net taxable income -------

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Jatin (Accountant) (3479 Points)
Replied 12 August 2018

Thank you Mr. Prasad, can I claim any standard deduction

prasad Nilugal ( GST Practitioner & Accounts ) (14546 Points)
Replied 12 August 2018

yes , standard deduction under section 24 of the income tax act 1961 , 30% of the annual value .

MOHAMMED IMRAN (1020 Points)
Replied 12 August 2018

30% of NAV standard deduction U/S24(a) in case of rental property ( no deduction in case NAV is nill) interest on borrowed capital as deduction u/s24(b)

rama krishnan (12234 Points)
Replied 12 August 2018

first of all gross annual value required to be computed

compare the fair market rental value and municipal valuation - > 1

higher of (1) has to be compared with standard rent value -> 2

lower of (2) has to be compared with actual rent received - > 3

higher of (3) is the gross annual value.
gross annual value is reduced by municipal taxes paid to arrive at net annual value

net annual value is reduced by 30% of standard deduction on NAV and interest on borrowed capital to arrive income from house property