How to calculate Net Asset Value for Let Out House Property?

What is the formula to calculate NAV of rented property for income tax purposes?

Hey Urja,

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.

For example:

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 :slight_smile: