The property:  Consists of any buildings or lands appurtenant thereto,  Of which the assessee is the owner, and  Which is not used for purposes of assessee’s business or profession.

A. Buildings Let Out: o Where standard rent is not given-  Expected Rent= Municipal Value or Fair Rent whichever is more  GAV= Expected Rent or Actual Rent whichever is more

o Where Standard Rent is given:  Expected Rent=  Municipal Value or Fair Rent whichever is more,  The above value or Standard Rent whichever is less  GAV= Expected Rent or Actual Rent whichever is more

= GROSS ANNUAL VALUE – MUNICIPAL TAXES ( municipal taxes should be paid by the owner only may be related to any previous year or in advance)

 Actual rent remains more than expected rent before and after vacancy allowance then actual rent is treated as GAV.  Actual rent becomes less than expected rent after vacancy allowance then actual rent after vacancy allowance is to be treated as GAV.

GROSS ANNUAL VALUE - MUNICIPAL TAXES - UNREALISED RENT = ANNUAL VALUE - STANDARD DEDUCTION 30% - INTEREST ON LOAN PAID FOR THE PRE CONSTRUCTION PERIOD - INTEREST ON LOAN PAID FOR THE CURRENT YEAR = INCOME FROM HOUSE PROPERTY

ANNUAL VALUE = NIL - INTEREST ON LOAN FOR PRE CONSTRUCTION AND CURRENT PERIOD = LOSS FROM HOUSE PROPERTY

Interest on loan deduction for the acquisition, construction, repairing, and renewal of the self occupied property is 30,000, but if, Interest on loan for the acquisition, and construction of the self occupied property on the loan taken after and whose construction completed within 3 years from the end of the year in which the loan was borrowed

GROSS ANNUAL VALUE - MUNICIPAL TAXES ( NO VACANCY ALLOWANCE OR UNREALISED RENT) = ANNUAL VALUE - 30% OF AV - INTEREST ON LOAN WITHOUT ANY LIMIT = INCOME FROM DEEMED TO BE LET OUT HOUSE PROPERTY

 UNREALISED RENT RECOVERED IS INCLUDED IN THE INCOME AS IT IS.  ARREARS OF RENT WHEN IS TO BE INCLUDED IS INCLUDED AFTER A DEDUCTION OF 30%