Determining the annual value of a house property that is partially self-occupied and partially let out can be a complex process that involves a number of factors. The first step in this process is to calculate the Gross Annual Value (GAV) of the property. In the case of a property that is self-occupied for a portion of the year, the GAV would be zero, as there is no rental income earned during this period. However, for the period when the property is let out, the GAV can be determined by adding up the annual rent received or receivable from the let out portion of the property, municipal taxes paid during the year (if any), and then subtracting the standard deduction of 30% on the rental income.
The next step is to determine the period of self-occupation. This can be determined based on the number of days that the property was occupied by the owner and the purpose of such occupancy. If the property was occupied for residential purposes, then it will be considered as self-occupied.
Once the GAV and the period of self-occupation have been determined, the Net Annual Value (NAV) of the property can be calculated. The NAV is calculated by deducting the municipal taxes (if any) from the GAV. It is important to note that the specific laws and regulations of the country and state where the property is located may affect the calculation of the NAV.
Finally, the taxable income from the property can be calculated. The taxable income is the higher of the following amounts: the NAV for the period the property was let out or the amount of rent that would be received if the property was let out for the entire year. This taxable income will be added to the individual’s total income for the year, and taxed according to the applicable income tax slab rates.
It is important to note that the calculation of the annual value of a house property that is partially self-occupied and partially let out can be a complex process that involves a number of variables. Therefore, it is advisable to seek guidance from a qualified tax professional to ensure that the correct calculation is made and the correct amount of tax is paid.