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Income from House Property
As the name suggest,it is the income earned from the building or land attached to building
It is chargeable to the owner of the property
STEPS TO COMPUTE iNCOME FROM HOUSE PROPERTY
| S.NO | PARTICULARS | AMT | STEPS |
| A | Municipal Value | xx | STEP 1 |
| B | Fair Rent | xx | |
| C | Higher of Municipal Value or Fair Rent | xx | |
| D | Standard Rent | xx | |
| E | Expected Rent (Lower of C or D) | xx | |
| F | Actual Rent | xx | STEP 2 |
| G | GAV | xx | |
| (Normally Higher of Expected or Actual Rent) | |||
| Less | xx | STEP 3 | |
| H | Municipal Taxes Paid | xx | |
| I | Unearned Rent | xx | |
| J | NAV | xx | |
| Less | xx | ||
| Deductions from House Property | STEP 4 | ||
| K | Standard Deduction | xx | |
| L | Interst on Housing Loan | xx | |
| M | Income from House Property | xx |
Hence ,it involves a number of steps which need to be remembered
Lets study these step by step
