| Income from a house property shall be determined in the following manner: |
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| Particulars | Amount |
| Gross Annual Value | - |
| Less: Municipal Taxes | - |
| Net Annual Value | *** |
| Less: Standard deduction at 30% [Section 24(a)] | - |
| Less: Interest on borrowed capital [Section 24(b)] | - |
| Income from house property | *** |
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| Gross Annual value [Sec. 23(1)] |
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| The Gross Annual Value of the house property shall be higher of following: |
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| a) Expected rent, i.e., the sum for which the property might reasonably be expected to be let out from year to year. Expected rent shall be higher of municipal valuation or fair rent of the property, subject to maximum of standard rent; |
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| b) Rent actually received or receivable after excluding unrealized rent but before deducting loss due to vacancy |
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| Out of sum computed above, any loss incurred due to vacancy in the house property shall be deducted and the remaining sum so computed shall be deemed to the gross annual value. |
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