This clarifies the treatment of vacant and multiple self-occupied properties for tax purposes. It's important to note that the "deemed to be let out" status can have significant tax implications.
The fair rent receivable from such property shall be treated as Income from house property. Fair rent can be computed on the basis of rental income for similar house property located in the same area.
Income chargeable to tax under the head "Income from house property" in the case of a deemed let-out property is computed in the following manner:
|
Particulars |
Amount |
|
Gross annual value |
XXXX |
|
Less:- Municipal taxes paid during the year |
XXXX |
|
Net Annual Value (NAV) |
XXXX |
|
Less:- Deduction under section 24 |
|
|
➣Deduction under section 24(a) at 30% of NAV ➣Deduction under section 24(b) on account of interest on borrowed capital |
(XXXX) (XXXX) |
|
Income from house property |
XXXX |
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