The Annual Taxable Value of the property is calculated by deducting municipal taxes paid, and deduction u/s 24 from the actual rent received/receivable/deemed rent.
Under section 24, two deductions are available:
- Standard deduction of 30% of the value arrived after deducting taxes from the rent and municipal taxes.
- Interest on the home loan
- Deemed owner is the person who is not legally registered as the owner of the property, but receiving the rental income.
- When the rent from the property also includes the rent of assets like the sofa, refrigerator, air conditioner, etc. Then, that is called composite rent.
Click on image to enlarge