Housing property helps save on taxes, multiply gains
A property is considered to be self occupied when an individual uses it for their own living purpose. If they own more than one property, only one can be considered as a self-occupied property and the rest are considered to be LOPs or DLOPs. Certain important points to be noted here are:
* A property is not taxable under house property taxes if it is used for commercial purposes.
* The NAV on the property will be zero if the property is occupied throughout the financial year.
* However, if it is occupied for some part of the year and procured income — rent —then the LOP will be calculated for the time period it was let out. The annual value will be calculated in the same way as the LOP.
A taxpayer can claim the following deductions from the Net Annual Value (NAV) under section 24(b):
Standard Deduction under Section 24(a): Possession of a residential property leads to high maintenance cost; however, regardless of the fact whether the taxpayer has incurred any expense or not, they can claim a flat exemption of 30% on the NAV of the property. This deduction is
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