INCOME FROM HOUSE PROPERTY

2.  SEC.22- Chargeability & basis of charge
 SEC.23(1) (a),(b)&(c)-Annual Value
 Explanation to sec 23(1)-Treatment Unrealized
Rent.
 SEC.24-Deductions
 SEC.25-Interest not allowed as deduction
 SEC.25AA-Treatment on subsequent received
of unrealized rent
 SEC.25B-Arrear of rent received
 SEC.26-Co-ownership of property
 SEC.27-Deemed Ownership

3.  Income is taxable under head “income from house
property” if following conditions are satisfied
1. The property should be owner of the property.
2. The assessee should be owner of the property.
3. The property should not be used by the owner for
the purpose of any business or profession carried
on by him, the profits of which are chargeable to
tax.
ANNUAL VALUE OF PROPERTY WILL BE TAXABLE
UNDER THIS HEAD

4.  A house property which is rented for the whole
or a part of the year is considered a let out
property for income tax purposes.
 A self-occupied property is used for one’s own
residential purposes.
 If a person owns more than one house property,
in that case only one house property will be
treated as self Occupied, other property will be
Deemed to be let out.

5. Particular Amount Amount
A. Gross Annual Value sec 23(1)
Less: Municipal Taxes paid and borne by owner in P.Y
Net annual value
Less: Deduction u/s 24
(i)Standard deduction (30% of NAV)
(ii)Interest on borrowed Fund XXX
XXX
XXX
(XX)
XXX
Net Taxable Income From House Property xxx

6. AV broadly specking may be either of the
following two amounts-
(1) Reasonable Lettable Value (RLV) : This is
the expected rent i.e ,the sum for which the
property might reasonably be expected to
let from year to year.
(2) Actual rent(AR): This is the actual rent
received or receivable by the owner in
respect of a property which is actually let.

7. A. Fair Rent xxx
B. Municipal Value xxx
C. Higher of[A] and [B] XXX
D. Standard Rent , if any xxx
E. Lower of [c] and [D]=[RLV] xxx
Fair rent is the rent fetched by a similar house in
the same locality.
Municipal Valuation is the Gross Rateable value
fixed by the Municipality for levy of the property
taxes.

8. Rent Received /Receivable xxx
Less: Allowable Unrealised Rent xxx
Actual Rent xxx