Nisha, a resident of India owns a house property at Karnal in Haryana. The municipal value of the property is ₹7,50,000, fair rent of the property is ₹6,30,000 and standard rent is ₹7,20,000 per annum. The property was l

Computation of Income from House Property of Ms. Nisha for AY 2019-20 Particulars Amount (₹) Amount (₹) Computation of Gross Annual Value Expected Rent for the whole Year = Higher of Municipal Value of ₹7,50,000 and Fair Rent of ₹6,30,000, but restricted to Standard Rent of ₹7,20,000 7,20,000 Actual rent received for the let-out period = ₹75,000*9 6,75,000 (unrealized rent is not deductible from actual rent in this case since the defaulting tenant is in occupation of another property of the assessee, and hence, one of the condition laid out in Rule 4 has not been fulfilled) Gross Annual Value "GAV" is the higher of Expected Rent for the whole year and Actual rent received/receivable for the let-out period 7,20,000 Gross Annual Value (GAV) 7,20,000 Less: Municipal Taxes (paid by the owner during the previous year) = 12% of ₹7,50,000 (90,000) Net Annual Value (NAV) 6,30,000 Less: Deduction u/s 24 (a) 30% of NAV = 30% of ₹6,30,000 (1,89,000) (b) Interest on amount borrowed for repairs (35,000) (2,24,000) Income from House Property 4,06,000