Self‑Occupied Property
Property used for own residence is treated as self‑occupied. Deemed annual value is generally nil subject to the allowed count and conditions.
House Property
Annual value, interest and allowed deductions
Let‑Out Property
Property given on rent is let‑out. Gross Annual Value is based on actual rent received/receivable or expected rent as per municipal and fair rent benchmarks.
Annual Value
Gross Annual Value is determined for the property; Municipal taxes actually paid are reduced to arrive at Net Annual Value for further deductions.
Municipal Taxes
Taxes paid to the local authority for the property during the year are deductible from Gross Annual Value to compute Net Annual Value.
Home Loan Interest
Interest on borrowed capital for acquisition, construction, repair or renewal of the property is allowable as a deduction subject to section 24 provisions.
Section 24(b) Deduction
Provides deduction for interest on housing loans, with conditions relating to purpose, completion timelines and applicable caps depending on self‑occupied or let‑out status.
Loss from House Property
When allowable interest exceeds Net Annual Value, the result is a loss from house property, subject to set‑off and carry‑forward restrictions.