Computation of Income from House Property that is Deemed Let out
If you own more than one property, then the second and subsequent properties are considered deemed let out even if you are not receiving any rent. Further, rent is calculate based on fair market value and tax is levied on the same.
[ Read more about tax consequences of owning multiple house properties ]
How to Determine Income from Deemed Let Out House Property?
Gross annual value of Deemed let out property is least of the
1) Fair Rent Value (FVR)
Determined using annual rent value of similar properties in your area
2) Assessed Value (Municipal Tax Value)
Determined as per Municipal Tax Value of the property
3) Standard Rent
As per Rent Act.