Calculation of Income from House Property

Given:
- M started construction of his house on 1.6.2013 and took a loan of mathcal Z mathcal 2,00,00 @13.5% from the bank.
- He took another loan of 6,00,000 @ 13% p.a on 1.4.2016 to complete the house.
- The construction was completed on 30.11.2016, and it was self-occupied from 1.12.2016.
- Assessment Year: 2021-22

To calculate income from house property, we need to consider the following:

1. Determine the Annual Value of the House Property
Annual Value = Higher of (Actual Rent Received or Expected Rent)
As the house is self-occupied, the actual rent received is zero. Therefore, we need to calculate the expected rent for the property.

Expected Rent = Municipal Value or Fair Rent or Standard Rent or Rent Received or Receivable
Since the house is self-occupied, the Municipal Value, Fair Rent, and Standard Rent are not applicable. Therefore, the expected rent is calculated as Nil.

Annual Value = Nil

2. Calculate the Deductions Allowed
The following deductions are allowed from the Annual Value of the House Property:
a. Municipal Taxes Paid during the year
b. Standard Deduction of 30% of the Annual Value

As the Annual Value is Nil, there is no deduction allowed.

3. Calculate the Net Annual Value
Net Annual Value = Annual Value - Deductions Allowed
In this case, the Net Annual Value is zero.

4. Calculate the Interest Paid on Housing Loan
The interest paid on the housing loan is allowed as a deduction from the Net Annual Value. The interest paid on the loan taken for construction of the house is allowed as a deduction in five equal installments, starting from the year of completion of construction.

Interest Paid on Loan for Construction = mathcal Z mathcal 2,00,00 * 13.5% = mathcal Z mathcal 27,000
Interest Paid on Loan for Completion = 6,00,000 * 13% = mathcal Z mathcal 78,000

As the construction was completed on 30.11.2016, we can claim the interest paid on the loan for construction and completion for the following years:

- 2016-17: mathcal Z mathcal 5,400 (mathcal Z mathcal 27,000/5)
- 2017-18: mathcal Z mathcal 5,400
- 2018-19: mathcal Z mathcal 5,400
- 2019-20: mathcal Z mathcal 5,400
- 2020-21: mathcal Z mathcal 5,400

Total Interest Paid on Housing Loan = mathcal Z mathcal 27,000 + mathcal Z mathcal 78,000 = mathcal Z mathcal 1,05,000
Deduction Allowed = Lower of (Net Annual Value or Interest Paid on Housing Loan) = mathcal Z mathcal 0

5. Calculate Income from House Property
Income from House Property = Net Annual Value - Deduction Allowed
Income from House Property = mathcal Z mathcal 0 - mathcal Z mathcal 0 = mathcal Z mathcal 0

Therefore, the