Taxability of Income from House Property

Taxability of Income from House Property based on  determination of annual value.
As per Section 23 of the Income Tax Act, 1961 ,The annual value shall be deemed to be-
1. If the property is let out, the amount of rent received or receivable. Section 23(1)
2. If property is self-occupied by the owner, the annual value is Nil. Section 23(2)
3. If property consist of more than one property, the provision of clause (2) of section 23 is applies at one house at the discretion of assessee.
The proviso to Sec 23(1) says that that Municipal tax levied by local authority shall be deducted in the year in which it is actually paid.
Section 24 of the Income Tax, 1961 allows deduction while computing income from house property i.e 30% of the annual value.

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