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
Categories: Income Tax, Personal Finance
Leave a Reply