Is imputed rent of self occupied houses included/excluded in National Income?
Is imputed rent of self occupied houses included/excluded in National Income?
Anurag Pathak Changed status to publish December 8, 2023
Yes,
It will be included in the national income as people living in such houses enjoy housing services similar to those in rented houses.
Imputed rent refers to the rent (as per the market value) of self-occupied houses.
If the same house will be rented by the house owner to other, the rent would be his income.
As the occupier enjoying the services of house and add to the flow of goods and services, it will be included in the National Income.
For example,
Salary of a person = ₹ 20,000
Imputed rent of his self-occupied house = ₹ 5000
Total Income = Salary of a person + Imputed rent of his self-occupied house
Total Income = ₹ 20,000 + ₹ 5,000
Total Income = ₹ 25,000
Thus, ₹ 25,000 will be added to the National Income
Anurag Pathak Changed status to publish December 8, 2023
