How are income from house property and deductions calculated?

Income from house property is taxable under the head ‘Income from House Property’ as per Sections 22 to 27 of the Income Tax Act. The net taxable income is calculated as the annual letting value less municipal taxes paid and deductions for repairs, interest on housing loan, and other eligible expenses. Section 24 specifies allowable deductions like standard deduction of 30% of annual value, interest on borrowed capital, and other deductions. Note: Finance Act 2025 has not amended these provisions. Supporting Case Law: Raja Beniram v. CIT (1989) – Supreme Court – (1989) 179 ITR 429 – Held that once annual value is determined, mandatory deductions under Section 24 must be allowed. Current Status: The house property income computation provisions are largely settled law.