CMA Intermediate · Direct and Indirect Taxation · Income from House Property
Under section 22(1) of the Income-tax Act, 2025, the standard deduction from the annual value of a house property is:
The deduction is 30% of the annual value determined under section 21. It is a flat statutory percentage, not linked to actual repairs or to interest, which is allowed separately under section 22(1)(b).
- A30% of the annual value determined under section 21Correct
- B30% of the net annual value after deducting municipal taxes and interest
- C30% of the actual rent received including unrealised rent
- DActual repair and maintenance expenses incurred, without limit
Explanation
Section 22(1)(a) allows 30% of the annual value as determined under section 21. It is a flat percentage and does not depend on actual repairs. The option applying 30% after interest is wrong because interest is a separate deduction under clause (b).
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