A self-occupied property means a property that is occupied by the taxpayer for his residence. More than two such properties are treated as "Deemed to be let out property". Income chargeable to tax under the head "Income from house property" in case of a self-occupied property is computed in the following manner :
|
Particulars |
Amount |
|
Gross annual value |
Nil |
|
Less:- Municipal taxes paid during the year |
Nil |
|
Net Annual Value (NAV) |
Nil |
|
Less:- Deduction under section 24 |
|
|
➣Deduction under section 24(a) @ 30% of NAV ➣Deduction under section 24(b) on account of interest on borrowed capital |
Nil (XXXX) |
|
Income from house property/(Loss) |
(XXXX) |
From the above computation, it can be observed that "Income from house property" in the case of a self-occupied property will be either Nil (if there is no interest on housing loan) or negative (i.e., loss) to the extent of interest on housing loan. Deduction in respect of interest on housing loan in case of a self-occupied property cannot exceed Rs. 2,00,000.
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