Step 4B Exemption for One Self Occupied Property

For One Self Occupied Property,

NAV=0

+

Deduction for Interest of 30000/200000

 Normal Cases

 If certain conditions satisfied,higher deduction of 200000

 IMPORTANT POINTS

If the property is self occupied then  its NAV (net assets value) will  deemed to be zero

This exemption is only available if the property is not let out during any part of the year minus any benefit derived from it .

If the assessee has more than 1 house which is self occupied, then he can choose only one such house to claim this exemption.

The assesse can also claim deduction    of interest on housing loan of Rs.30000 / 200000 as explained below .

Conditions to be fulfilled to claim Higher Deduction

If all the below condition satisfied ,then 2,00,000 deduction .(earlier limit was 150000)

1 .Property is acquired after 1/4/1999

+

Loan is for construction/Acquisition of House (Not repair/Renovation)

+

Certificate received from person who has received the interest (bank)

+

Construction completed within 3 years   5 year  from date of loan (New Amendment)

In any of the condition not satisfied,then only Rs 30000 deduction

Example:-Loan is for repair or renovation or Certificate not received

Comparison of Interest

Q1