Income from House Property - Notes
Introduction
- Class time: Monday to Friday, 9 PM
- Subject: Income from House Property
- The chapter is simple and fun.
Main Heads of Taxation
- Income from Salaries
- Income from House Property
- Capital Gains
- Income from Other Sources
Income from House Property
- Section 22: If a person is the owner of a house property and receives rental income from it, it will be taxed.
- Tenant's situation in a rented house:
- If a room is rented out, then what will be the tax situation.
Categories of House Property
- Let Out Property (which is rented out)
- Self-Occupied Property (where the person resides)
- Self-occupied property can also be used for business.
Deduction and Taxation
- Net Annual Value (NAV): To calculate it, municipal taxes are subtracted from the Gross Annual Value (GAV).
- Deduction: A flat deduction of 30% and interest on a loan can also be deducted.
Calculation Format
- Municipal Value
- Fair Rent
- Higher of the two
- Standard Rent
- Expected Rent
- Actual Rent Received
- Gross Annual Value (GAV)
- Net Annual Value (NAV)
Example Questions
- Question 1: Calculate the gross annual value of Jai Shree's 5 houses.
- Question 2: Calculate the net annual value of Nandan's 5 houses.
Conclusion
- Prepare for the next questions and review all important points.
- Attend class and study regularly.
Note: Take screenshots and prepare notes for study.