Mr. Ravi, a resident in India, owns two house property, one in Delhi and another in Kanpur. The property in Kanpur is self-occupied by Mr. Ravi,…

Computation of total income of Mr. Ravi for A.Y. 2025-26 under default tax regime Particulars Particulars ₹ I. Salaries Gross salary 18,00,000 Less: Standard deduction under section 16(ia) 75,000 17,25,000 II. Income from house property Rented property at Delhi Step I - Computation of Expected Rent Expected Rent = Higher of Municipal Value of 2,05,000 and Fair Rent of 1,95,000, but restricted to Standard Rent of 1,72,000 1,72,000 Step II - Actual Rent Actual rent received or receivable (₹ 15,000 x 12) 1,80,000 Step III - Computation of Gross Annual Value GAV is the higher of Expected Rent and Actual rent received/ receivable 1,80,000 Gross Annual Value 1,80,000 Less: Municipal taxes (5% of 2,05,000) 10,250 Net Annual value 1,69,750 Less: Deductions under section 24 - (i) 30% of net annual value 50,925 (ii) Interest on loan (35lakhs x 12%) 4,20,000 (3,01,175) Self occupied property at Kanpur Annual value [No deduction for municipal taxes is allowed in respect of self-occupied property] Nil Less: Deduction under section 24 - Interest on borrowed capital [Not allowable under section 115BAC] Nil Nil Income from house property (3,01,175) Gross Total Income [Loss from house property neither allowed to be set off against income under any other head nor it can be carry forward to subsequent year while computing income under section 115BAC] 17,25,000 Less: Deduction under section 80EEA [Not allowable under section 115BAC] Nil Total Income 17,25,000