The following information is supplied to you in respect of four house properties for the previous year 2020-21. Particulars House 1 House 2 House 3 House 4 Status at Mumbai Abu Kolkata Hyderabad Purpose of usage Self occ

In the given case, as there are more than 2 residential house properties, which are in the occupation of the owner for his residential purposes, then he may exercise an option to treat any 2 houses to be self occupied properties. The other house will be deemed to be let out. Accordingly, there are following options, namely: Option 1: Take H1 & H3 as Self-Occupied (S/O) and H2 as Deemed to be Let-Out (DLO) Option 2: Take H1 as deemed to be let out and H2 & H3 as Self-Occupied Option 3: Take H3 as deemed to be let out and H1 & H2 as Self-Occupied Total Income under the head House Property shall be computed applying each option separately and then the option, which yields least income under this head, shall be opted. Particulars Option 1 Amount (₹) Option 2 Amount (₹) Option 3 Amount (₹) H1 & H3 S/O H2 DLO H1 DLO H2 & H3 S/O H3 DLO H1&H2 S/O Gross Annual Value Nil 2,00,000 3,00,000 Nil 7,00,000 Nil Less: Municipal Tax 15% of Municipal Value Nil (30,000) (45,000) Nil (1,05,000) Nil Net Annual Value (NAV) Nil 1,70,000 2,55,000 Nil 5,95,000 Nil Less: Standard Deduction 24(a)@30% of NAV Nil (51,000) (76,500) Nil (1,78,500) Nil Interest on loans 24(b) (2,00,000) (1,00,000) (40,000) (2,00,000) (2,10,000) (30,000 Note 1) Total Deduction (2,00,000) (1,51,000) (1,16,500) (2,00,000) (3,88,500) (30,000) Income under the head house property (2,00,000) 19,000 1,38,500 (2,00,000) 2,06,500 (30,000) Income under the head house property (Total) (1,81,000) (61,500) 1,76,500 Notes: In case of self occupied property, the maximum allowed interest is ₹ 30,000 if the loan is taken prior to 1st April, 1999. Such limit has been increased to ₹ 2,00,000 if loan is taken on or after 1st April, 1999. Since H4 is used for own business purpose, so it is not taxable under this head. It is assumed that assessee is not covered u/s 115BAC. Total income under the head Income from House Property as per option 1 i.e. ₹ (1,81,000) should be opted, as yielding least taxable income under this head.