Income under House and Property
Income from House property is calculated by considering the Annual Value. The annual values (for a let-out property ) is based on the following:
- HRA Rent Received
- Municipal Valuation
- Fair Rent (as determined by the IT department)
However if a house is not let out and not self-occupied, then annual value is assumed to have accrued to the owner. In case of a self occupied house, annual value is to be taken as NIL. Nut there is more than one self occupied house then the annual value of the other house/s is taxable. From this, Municipal Tax is deducted to arrive at the Net Annual Value.
