what is annual value? explain the various deductions which are allowed from annual value u/s 24
Answer (1)
Student Expert
16th Feb, 2022
Hello aspirant,
Annual Value Definition:
Annual Value or the Gross Annual Value is defined as the annual value of a property which is used in tax calculation or the property rent to be applied.
The Annual Value can be determined by using 4 factors which are listed below.
- Standard Rent
- Fair Rent
- Actual Eent received/receivable
- Municipal Value
U/S 23 means Tax Deduction on Home Loan Interest: Section 24. If the house owner is residing in the property then house owners can claim a deduction amount of upto Rs. 2 Lakhs on interest on home loan.
I hope this information will help you.
Best of Luck!!
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