BABITA (student) (77 Points)
07 April 2010X is owner of big house which contain 4 flats of equal size. house has municipal value of Rs. 1,00,000. one flat is self occupied, three are let out to different person @ of Rs. 2000per month per flat which is let out remain vacant for 2 months . municipal tax paid during the year is Rs. 8000. find the income from house propert.
Is any differance in valuation when these are of different of size??
Kaushik Vankadkar
(Service)
(350 Points)
Replied 08 April 2010
| Actual Rent received | 2000*10*3 | 60,000 | |||
| Municipal Valuation | 3 flats | 75,000 | |||
| Where let out property is vacant for a part of the year and owing to vacancy, the acutal rent received is less than Valuation, | |||||
| then acutal rent received or receivable will be the GAV | |||||
| GAV | 60,000 | ||||
| Less: Municipal taxes | 8000/4*3 | 6,000 | |||
| NAV | 54,000 | ||||
Amir
(Learner)
(4016 Points)
Replied 08 April 2010
Dear Kaushik,
Bhai I feel in this case GAV will be 63,000 & not 60,000...since Loss of Rs. 3,000 is not because of vacancy...
If there was no vacancy then Actual Rent would have been = 2000*12*3 = 72,000
& Municipal Valuation is 75,000
Since the loss of Rs. 3,000 is not due to vacancy & hence it will not be excluded in computing GAV.
Kaushik Vankadkar
(Service)
(350 Points)
Replied 08 April 2010
Yaa sir, I assumed that the loss is due to vacancy.
Babita please follow Amir sir's explanation and also find " Have you incurred loss in actual receipt of rent ?" and "Has that been a cause of Vacancy or not?"
Thanks alot
CAclubindia
