1. 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 30000 For construction of the house- For loan taken on or after 1.4.1999 and construction of the house completed within three years from the end of the financial year in which loan was taken- Maximum Limit- Rs 200000 For loan taken before 1.4.1999- Maximum Limit- Rs 30000.  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 150000 and Rs 200000 respectively. The house was constructed with a loan of Rs 300000 @ 12% p.a. Calculate the income of the house in the following cases- i.If the loan was taken on 1.1.1999 and the construction was completed on 31.12.2001 and the loan is still outstanding

2. ii. Loan was taken on 1.1.2009 and the construction was completed on 21.12.2012, the loan is still outstanding iii. Loan was taken on 1.1.2015 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 3000030000 -------------- (30,000) ------------- Case-(ii) Calculation of interest on loan- Pre-period- 1.1.2009 to 31.3.2012 = 39 months Interest on Loan = Rs 3,00,000 x 12/100 x 39/12 = 117000 Pre-period Interest = Rs 117000 x 1/5 = 23,400 Current years interest= Rs 300000 x 12/100 = 36,000 Total interest= Rs 23400+ Rs 36000 = Rs 59400

3. Gross annual Value Nil Less: Interest on Loan: a) Actual = Rs 59,400 b) Maximum Limit = Rs 2,00,000 59,400 ----------- (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 3000030000 -------------- (30,000) -------------

4.  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-

5. House-IHouse-II Fair Rent (Rs)150000200000 Gross Municipal Value (Rs)160000210000 Standard Rent (Rs)170000150000 In case of first house GAV is Rs 160000 while in case of House-II it is Rs 150000. 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.