What is the formula to calculate NAV of rented property for income tax purposes?
If a House Property is given on rent for the whole year or a part of the year then it is considered as Let Out House Property.
Net Annual Value (NAV) = Gross Annual Value – Municipal Taxes
For calculation of let out property, Gross Annual Value (GAV) is the amount of rent received during the year.
Anuj rented property with an annual rent of INR 2,00,000. Anuj paid INR 15,000 for municipal taxes the financial year.
NAV = 2,00,000 - 15,000
NAV = 1,85,000
Here is a guide on Income from House Property to help you understand better.
Hope this helps