A self-occupied property means a property which is occupied throughout the year by the taxpayer for his residence. Income chargeable to tax under the head "Income from house property" in case of a self-occupied property is computed in following manner :
| Particulars | Amount |
| Gross annual value | Nil |
| Less:- Municipal taxes paid during the year | Nil |
| Net Annual Value (NAV) | Nil |
| Less:- Deduction under section 24 | |
➣Deduction under section 24(a) @ 30% of NAV
➣Deduction under section 24(b) on account of interest on borrowed capital
|
Nil
(XXXX)
|
| Income from house property | XXXX |
From the above computation it can be observed that "Income from house property" in the case of a self occupied property will be either Nil (if there is no interest on housing loan) or negative (i.e., loss) to the extent of interest on housing loan. Deduction in respect of interest on housing loan in case of a self-occupied property cannot exceed Rs. 2,00,000 or Rs. 30,000, as the case may be (discussed later).
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