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<h1>Income from house property: deductions for a percentage of NAV and interest on borrowed capital reduce taxable income.</h1> Income from house property for a let-out property is computed by deducting municipal taxes from Gross Annual Value to arrive at Net Annual Value (NAV). From NAV, allowable deductions comprise a standard deduction at a fixed percentage of NAV and a deduction for interest on borrowed capital. The remainder after these deductions is the income chargeable under the head Income from House Property.