Hey,
I want to tell you that “Loss from House Property” is a common scenario at the time of declaring income from house property when filing for taxes. I have also faced this scenario once. Let me tell you about the main reasons for the loss from house property:
Self Occupied Property:In this case, the Gross Annual Value (GAV) will be Nil. Since you ain’t earning any income or rent due to self-occupation, the interest on the loan and property taxes paid will be considered loss under the heading. You can make the maximum deduction of Rs.1.5L as per the Income Tax Act (Section 24) for interest on home loan.
Loss of Income under Let Out PropertyThe Gross Annual Value won’t be Nil in this case. In case the deductions exceed the GAV, it would result in a loss under the House Property head.
How to Calculate Loss on House PropertyGross Annual Value (Expected rent or rent received (Nil it is a self-occupied property))
Less: Municipal or any other local tax paid on the property
= Net Annual Value
Less: Deductions under section 24
A) Statutory deduction at 30% of the NAV (Net Annual Value)
B) Interest paid on home loan
= Loss or income under the House Property head
I hope now you know how to calculate income loss from house property.
Calculate Income from House Property on the Government’s Income Tax Website
Read more:
What is income from house property?
How to calculate income from house property?
How house rent is deducted from income tax?
I hope you like my answer on loss from house property.
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How to calculate loss on house property?
Mehul
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4 Year
2021-12-20T18:08:29+00:00 2021-12-20T18:47:51+00:00Comment
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