The net annual value of house let out is ` 1,00,000 and actual amount spentby the assessee on repairs and insurance premium is ` 20,000. The amountof deduction allowed under Section 24(a) shall be .

Question

Quizplus · Accepted Answer

Under Section 24(a) of the Income Tax Act, a standard deduction of 30% of the net annual value is allowed for repairs, insurance, etc., irrespective of the actual amount spent. Therefore, for a net annual value of `1,00,000, the deduction allowed is 30% of `1,00,000 = `30,000.

The Net Annual Value of House Let Out Is `