# Property Let Out for Part of Year and SOP for Part of Year

## Scenario

A single property used as SOP for part of the year and let out for the remaining part of the same year.

## Treatment

The entire property is treated as LOP for the year (not split into SOP + LOP).

## Computation Rules

Item	Treatment
Expected Rent	Take for the WHOLE YEAR (i.e., MV / FR / SR for 12 months)
Actual Rent	Only for the let-out period
GAV	Higher of (Annual Expected Rent) or (Actual Rent for let-out period)
Municipal Taxes	Whole year — if paid by owner during the PY
Standard Deduction	30% of NAV (full year)
Interest u/s 24(b)	Full year interest (no proportionate split)

## Key Insight

This is different from the 'partly SOP partly LOP by area' case.
Here, time-based split → treat as LOP for whole year.
The benefit of SOP (NIL AV) is lost for the period of self-occupation.

Worked example

### Example 1

Example: Mr. X owned a flat — used as SOP from 1-Apr-2025 to 30-Sep-2025 (6 months), then let out from 1-Oct-2025 to 31-Mar-2026 @ ₹25,000 p.m. MV = ₹1,80,000 p.a.; FR = ₹2,40,000 p.a.; SR = ₹2,20,000 p.a. Municipal taxes ₹20,000 paid. Interest on loan ₹1,50,000.

Expected Rent (annual) = Lower of (Higher of MV/FR) and SR = Lower of (2,40,000) and (2,20,000) = ₹2,20,000
Actual Rent (let-out 6 months) = 25,000 × 6 = ₹1,50,000
GAV = Higher of ₹2,20,000 and ₹1,50,000 = ₹2,20,000
NAV = 2,20,000 − 20,000 = ₹2,00,000
Std Deduction = 30% × 2,00,000 = ₹60,000
Interest = ₹1,50,000 (full)
Income from HP = 2,00,000 − 60,000 − 1,50,000 = ₹(10,000) Loss

⚠️ Common exam mistakes

Splitting the property as part-SOP and part-LOP for the year — must treat as full LOP.
Taking expected rent for only the let-out period.
Reducing municipal taxes only for the let-out period.
Taking interest only for the let-out portion of the year.

Reference:

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