hanish (article -student) (47 Points)
04 May 2011In case of HOuse Property , if a house has been let out to a tenant but he hasnt occupied that house in that P.Y nor we received any rent ..neither the assessee has occupied that house.
in that case what is the GAV of the house....
Is it ZEro or the expected rent..????
thx..
Deepak Gupta
(CA Student)
(15922 Points)
Replied 04 May 2011
Gross Annual Value is NIL
.
Example:
.
Municipal Value = 80
Fair Rent = 78
Standard Rent = 76
Annual Rent = NA
Property remains vacant for 12 months
.
1) Reasonable expected rent = 76
(higher of MV and FR but subject to SR)
2) Rent received = NIL
3) Higher of 1 and 2 = 76
4) Loss due to vacany = 76
5) Gross annual value (3-4) = NIL
.
Note: If property is vacant for the whole year, then loss due to vacancy = RER
(because if property was not vacant then atleast the assessee could have got the reasonable expected rent)
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