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 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.
|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 automatically calculates the standard deduction for let out & deemed let-out house property based on the information you provide while preparing your ITR.