# Property Partly SOP and Partly LOP (Area-wise Split)

## Scenario

A single property's portions are simultaneously used differently — e.g., ground floor self-occupied, first floor let out.

## Treatment

Treat each portion as a separate property — compute HP income independently for the SOP and LOP portions.

## Computation Format

Particulars	LOP Portion	SOP Portion
Expected Rent	Proportionate MV/FR/SR for LOP portion	NIL
Actual Rent	Whole rent received for LOP portion	NIL
GAV	Higher of ER & AR	NIL
(-) Municipal Taxes	Proportionate (if owner paid in PY)	NIL
NAV	xxx	NIL
(-) 30% Standard Deduction	(30% of NAV)	0
(-) Interest u/s 24(b)	Proportionate interest	Proportionate interest
Income from HP	xxx	(xxx)

## Apportionment Basis

Usually based on built-up area / floor area ratio.
All items (MV, FR, SR, Municipal Taxes, Interest) are split in this ratio.

## Difference from Time-Based Split

Area-based (this case) → Treat as separate SOP and LOP portions.
Time-based (whole property used differently in same year) → Entire property treated as LOP for the year.

Worked example

### Example 1

Example: Property — 60% let-out, 40% self-occupied. Total MV ₹3,00,000; FR ₹3,50,000; SR ₹3,40,000. Whole rent received ₹2,40,000 (for the let-out portion). Municipal taxes ₹40,000 paid. Interest on loan ₹1,00,000.

LOP Portion (60%):

Expected Rent = 60% of [Lower of (Higher of MV/FR = 3,50,000) and SR (3,40,000)] = 60% × 3,40,000 = ₹2,04,000
Actual Rent = ₹2,40,000
GAV = Higher = ₹2,40,000
Municipal tax (60%) = ₹24,000 → NAV = ₹2,16,000
30% Std Deduction = ₹64,800
Interest (60%) = ₹60,000
LOP Income = 2,16,000 − 64,800 − 60,000 = ₹91,200

SOP Portion (40%):

NAV = NIL
Interest (40%) = ₹40,000
SOP Loss = (₹40,000) — subject to SOP cap (Old Regime)

Total HP Income = 91,200 − 40,000 = ₹51,200

⚠️ Common exam mistakes

Treating the whole property as LOP just because part is let out (confusing with time-based case).
Not apportioning MV/FR/SR, municipal taxes and interest by area.
Claiming full ₹2,00,000 interest cap on the SOP portion without proportionate splitting.
Apportioning by rooms when area is the standard basis.

Reference:

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Property Partly Let Out and Partly Self-Occupied (Area-wise)

Worked example

⚠️ Common exam mistakes