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Help regarding claculation of gav in ihp

sabia (CWA Finals) (548 Points)

17 February 2012

Dear Freinda,

Requesting you to clarify me the process for calculating GAV while doin IHP..

M very much confused ..

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4 Replies

mohit goyal (abc) (276 Points)
Replied 17 February 2012

HI SABIA ,

YOU CAN CALCULATE GAV IN THE FOLLOWING MANNER

GAV = HIGHER OF THE FOLLOWING-

1. MARKET VALUE OR

2. FAIR RENT

BUT SUBJECT TO STANDARD RENT. IT MEANS AFTER CALCULATING ABOVE VALUE MINIMUM OF STANDARD RENT OR ABOVE VALUE WILL BE YOUR GAV.

AFTER CALCULATING GAV DEDUCT MUNICIPAL TAXES PAID U WILL GET NAV

HOPE IT WILL HELP U

MOHIT GOYAL

7503922975

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Sanat kumar (Chartered Accountant) (265 Points)
Replied 17 February 2012

Hi Sabia,

Plz find the attached sheet for detailed calculation of GAV in case of Letout property.

Rgds,

Sanat

Attached File : 306001 932807 gav hp.rtf downloaded: 251 times

CA PRABHAKAR JHA (ACA) (313 Points)
Replied 17 February 2012

Gross Annaul Value is Higher of

1. Actual Rent Received or Receiviable

2. Annual Reasonable Expect Rent

Now Let's See what is Annual Reasonable Expect Rent: It is higher of

1. Fair Rent(FR)

2. Muncipal Value(MV)

But limited to Standard Rent(SR)

for example if FR-25000, MV-30000, SR-45000 in that case Annual Reasonable Expect Rent will be 30,000 because higher of FR and MV is 30,000 which is under SR-45000.

Let see another example FR-50000, MV-35000 and SR-45,000 in that case the SR become applicable because the higher of FR and MV is 50,000 which greater than SR-45,000 therefore Annual Reasonable Expect Rent will be 45,000

Now go back to the GAV which higher of

1. Actual Rent 50000

2 Expected Rent: 45000 ( explanation in second example above)
a)FR-50000
b)MV-35000
c) SR-45000

Therefore GAV will be 50,000

Hope this will solve your doubt.