1. Property I (Self-occupied):
- Municipal Rental Value: Rs. 60,000
- Actual Rent: Nil (Self-occupied)
- Fair Rental Value: Rs. 72,000
- Municipal Taxes Paid: Rs. 12,000
- Standard Deduction (30% of Net Annual Value): Rs. 21,600 [(72,000 – 12,000) * 0.30]
- Net Annual Value: Rs. 60,000 (72,000 – 12,000 – 21,600)
2. Property II (Let out):
- Municipal Rental Value: Rs. 90,000
- Actual Rent: Rs. 84,000 (7,000 * 12)
- Fair Rental Value: Rs. 1,02,000
- Municipal Taxes Paid: Rs. 8,000
- Standard Deduction (30% of Net Annual Value): Rs. 22,800 [(1,02,000 – 8,000) * 0.30]
- Net Annual Value: Rs. 91,200 (1,02,000 – 8,000 – 22,800)
- Loss due to non-recovery of rent: Rs. 18,000 (allowed by AO)
3. Property III (Mixed use):
- Municipal Rental Value: Rs. 1,80,000 (60,000 * 3)
- Actual Rent:
- Unit X (let out for full year): Rs. 72,000 (6,000 * 12)
- Unit Y (used for own business): Nil (no actual rent received)
- Unit Z (let out for 5 months and self-occupied for 7 months): Rs. 30,000 (6,000 * 5)
- Fair Rental Value: Rs. 1,02,000 (for Unit X)
- Municipal Taxes Paid: Rs. 24,000 (12,000 * 2)
- Standard Deduction (30% of Net Annual Value): Rs. 20,400 [(1,02,000 – 24,000) * 0.30]
- Net Annual Value: Rs. 87,600 (1,02,000 – 24,000 – 20,400)
Now, let’s calculate the total income:
Total Income = Income from Other Sources + Income from House Properties
= Rs. 2,40,000 + (Net Annual Value of Property I + Net Annual Value of Property II + Net Annual Value of Property III)
= Rs. 2,40,000 + (60,000 + 91,200 + 87,600) = 479800
