Mrs. Anjali, a U.S. citizen, is a resident and ordinarily resident in India for the financial year 2024-25. She owns a house property in Chicago,…

Since Mrs. Anjali is a resident and ordinarily resident in India, her global income would form part of her total income i.e., income earned in India as well as outside India will form part of her total income. She possesses a self-occupied house at Chicago as well as at Surat. She can take the benefit of "Nil" Annual Value in respect of both the house properties. As regards the Ranchi house, arrears of rent will be chargeable to tax as income from house property in the year of receipt under section 25A. It is not essential that the assessee should continue to be the owner. 30% of the arrears of rent shall be allowed as deduction as per section 25A(2). Accordingly, the income from house property of Mrs. Anjali for A.Y.2025-26 will be calculated as under: Particulars Particulars ₹ Self-occupied house at Chicago Annual Value Nil Less: Deduction under section 24 Nil Nil Self-occupied house property at Surat Annual Value Nil Less: Deduction under section 24 Interest on borrowed capital (Refer note below) (1,91,940) (1,91,940) Arrears in respect of Ranchi property (Section 25A) Arrears of rent received 60,000 Less: Deduction @30% u/s 25A(2) 18,000 42,000 Loss under the head "Income from house property" (1,49,940) Note: Interest on borrowed capital Particulars ₹ Interest for the current year (₹ 50,800 +1,31,300) 1,82,100 Add: 1/5th of pre-construction interest (₹ 49,200 x 1/5) 9,840 Interest deduction allowable under section 24 1,91,940