If a House Property is given on rent for the whole year or a part of the year then it is considered as Let Out House Property.
Net Annual Value (NAV) = Gross Annual Value – Municipal Taxes
For calculation of let out property, Gross Annual Value (GAV) is the amount of rent received during the year.
Anuj rented a property with an annual rent of INR 2,00,000. Anuj paid INR 15,000 for municipal taxes the financial year.
NAV = 2,00,000 - 15,000
NAV = 1,85,000