Income from house property-vacancy allowance ?

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CA Abhishek Singh (Querist)
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20 June 2012 Hello everyone,

i have confusion adjustment of vacancy allowance for computing income from house property

1. In one of the book (ainapure-tybaf, mumbai university)income has been calculated as follows :

I.Reasonable letting value 150
II.acutalrent(vac.loss-10) 130
III.gross annual value = 150
(since RLV is higher than actual rent and even if there is no vacancy loss ie. 130+10=140, still RLV would have been greater than the acutal rent recd/receivable)

2. However in VK singhania treatment is different

I.Resonable letting value 150
II.actual rent received/receivable 140
III.Higher of I OR II 150
IV LESS: vacancy loss 10
v III-IV = GROSS ANNUAL VALUE 140

which one is correct.
waiting for views of the experts

Ca Anand Dubey

Ca Anand Dubey (Expert)
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21 June 2012 Vacancy loss would be different in both cases.if calculated on actual it would be Rs. 10 and if calculated on RLV it would be more than Rs. 10 (i.e.10.71)

anyway,go with singhania