14 July 2008
Mr.X having two houses one self occupied full year and second one is vacant up to 31.12.07 and there after letout for three months, monthly rent 15000/-. my question is whether we have to take 15000*3=45000/- or 15000*12=180000/- as taxable rent.whether notional rent need to include? whether that second house will come under deemed to be let out?
15 July 2008
The annual value for second property shall be the Actual Rent Received or the sum for which the property may be let out for a year, whichever is lower. As such in the given case it will be Rs 45000
15 July 2008
Where the property is let out and was vacant during the whole or any part of the previous year and owing to such vacancy the actual rent received or receivable by the owner in respect thereof is less than the estimated whole year rent,then the actual amount so received or receivable will be considered as Gross Anual Value.Hence Rs. 45,000 is GAV.
CAclubindia
