Anupam owns a residential house property in Noida (UP). It has two equal residential units-Unit I and Unit II. Unit I is self-occupied by Anupam for his residential purpose, while Unit II is let out at ₹10,000 per month

Computation of Income from House Property of Mr. Anupam for A.Y. 2026-27 (Opted out of default tax regime under section 115BAC) Particulars Amount (₹) Amount (₹) Unit I - Self-occupied (SOP): (50%) Net Annual Value Nil Less: Interest on borrowed capital [1/2 of ₹1,65,000] 82,500 Income from Unit I (82,500) Unit II - Let out: (50%) Municipal value (₹36,000 x 10 times x 50%) 1,80,000 Fair rent (₹70,000 x 4 x 50%) 1,40,000 Whichever is higher (A) 1,80,000 Standard rent (50% of ₹3,00,000) (B) 1,50,000 Expected Rent - lower of (A) and (B) 1,50,000 Annual Rent (₹10,000 x 12) 1,20,000 Gross Annual Value (Higher of Expected Rent or Annual Rent) 1,50,000 Less: Municipal tax paid by owner Nil Net Annual Value 1,50,000 Less: Standard deduction (30% of ₹1,50,000) (45,000) Interest on borrowed capital [50% of ₹1,65,000] (82,500) Income of Unit II 22,500 Income from House Property (Unit I+ Unit II) (60,000) Working Note: Repairs charges of ₹2,500 and Property Insurance of ₹6,000 is not allowed for computing the Income from House Property. Only Municipal tax actually paid by owner is allowed for computing Net Annual Value.