Gross Annual Value of Self-Occupied Property  Self-Occupied house used for own Residence:  Gross Annual Value of the House will be NIL.  Deduction for Interest on Loan- For repairing, renewal and renovation of the house- Maximum limit is Rs For construction of the house- For loan taken on or after and construction of the house completed within three years from the end of the financial year in which loan was taken- Maximum Limit- Rs For loan taken before Maximum Limit- Rs  Self-Occupied house kept for own residence, but remains vacant for whole P.Y- Same provisions as above. Example- Mr.X is the owner of a house in Kolkata, the Fair Rent and GMV of which are Rs and Rs respectively. The house was constructed with a loan of Rs 12% p.a. Calculate the income of the house in the following cases- i.If the loan was taken on and the construction was completed on and the loan is still outstanding

ii. Loan was taken on and the construction was completed on , the loan is still outstanding iii. Loan was taken on for repairing of the house and the loan is still outstanding. Case-(i) Gross annual Value NIL Less: Interest on Loan a) Actual (3,00,000 x 12/100) = Rs 36,000 b) Maximum Limit = Rs (30,000) Case-(ii) Calculation of interest on loan- Pre-period to = 39 months Interest on Loan = Rs 3,00,000 x 12/100 x 39/12 = Pre-period Interest = Rs x 1/5 = 23,400 Current years interest= Rs x 12/100 = 36,000 Total interest= Rs Rs = Rs 59400

Gross annual Value Nil Less: Interest on Loan: a) Actual = Rs 59,400 b) Maximum Limit = Rs 2,00,000 59, (59400) Case-(iii)- Gross annual Value NIL Less: Interest on Loan a) Actual (3,00,000 x 12/100) = Rs 36,000 b) Maximum Limit = Rs (30,000)

 Partly let-out and Partly self-occupied house- In relation to portion- In this case only proportionate figure should be considered for let out and self-occupied part. In relation to period- In this case the period for which the property is let out should be considered ignoring the period for which the property is self- occupied and the computation will be done in the same manner as that of let out.  Deemed to be let out House- Where the assesse has more than one house kept for his own residence, then one such house at the occupation of the owner should be treated as self- occupied and the remaining house should be treated as let-out house. Hence from tax planning point of view house having greater annual value should be treated as self- occupied house. Example- Mr.X has two houses kept for his own residence the particulars of which is given below-

House-IHouse-II Fair Rent (Rs) Gross Municipal Value (Rs) Standard Rent (Rs) In case of first house GAV is Rs while in case of House-II it is Rs Hence, House-I will be treated as self-occupied house. Realisation of Unrealised Rent-Sec 25AA- The provisions are as below-  The deduction relating to unrealised rent was allowed in early assessment.  The realisation is taxable in the year in which it is realised.  The realisation is taxable under the head ‘income from House Property’  No deduction will be allowed against such realisation.