The taxable income from let out house property will be used for income tax calculation.
Taxable Income = NAV – (NAV * Standard Deduction) – Interest
Standard Deduction of 30% is allowed to let out house property owners.
Let's take an example:
Anuj rented a property with an annual rent of INR 4,80,000. Anuj paid INR 30,000 for municipal taxes and INR 2,35,000 as interest on home loan for the financial year.
| Particulars | Letout |
|---|---|
| Gross Annual Value (GAV) | 4,80,000 |
| Less: Property Taxes Paid | 30,000 |
| Net Annual Value (NAV) | 4,50,000 |
| Less: 30% Standard deduction on NAV | 1,35,000 |
| Less: Interest payable on Home Loan | 2,35,000 |
| Income/(loss) from House Property | 80,000 |
*Note: Quicko's algorithms automatically calculate the standard deduction for let out house property based on the information you provide in the ITR.
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