Understanding House Property Income under Section 24
Income from House Property is calculated after subtracting municipal taxes paid by the owner to arrive at Net Annual Value (NAV). Taxpayers enjoy a flat 30% statutory deduction under Section 24(a) plus deduction for home loan interest under Section 24(b).
Frequently Asked Questions (FAQs)
What is the standard deduction under Section 24(a)?
Under Section 24(a), a statutory deduction of flat 30% is allowed on Net Annual Value (NAV) for repairs, maintenance, and collection charges, regardless of actual expenses incurred.
What is the maximum deduction for home loan interest under Section 24(b)?
For self-occupied properties, home loan interest deduction is capped at ₹2,00,000 per financial year. For let-out properties, the entire actual interest paid is deductible, subject to an overall loss set-off cap of ₹2,00,000 against other heads of income.
