agree with rahul

PLZ NOTE Circular NO.14 of2001 CBDT

Rationalisation of provisions relating to income from house property

The existing provision contained in section 23 of the Income-tax Act provides for determination of annual value of the property in certain circumstances including where the property is let, or is self-occupied, or is vacant, or is partially let, or is let for part of the year. The annual value so determined is subject to deductions allowable under section 24, including deductions on account of vacancy for any part of the year in respect of the property let, and on account of rent which cannot be realised. With the various amendments made over the years in this section, the provisions have become quite complicated and difficult for the taxpayer to understand. It is therefore proposed to substitute the said section so as to provide for a simplified determination of annual value in certain circumstances specified in the proposed new section, after allowing deductions in computing the annual value on account of vacancy and unrealised rent.

Under the existing provisions contained in section 24, the income chargeable under the head “Income from house property” is, in certain cases, computed after making deductions of one-fourth of the annual value in respect of repairs or collection charges, interest on capital borrowed for acquiring, constructing, repairing, renewing or reconstructing the property, and other deductions on account of insurance premium, ground rent, annual charge, etc. It is proposed to substitute the said section so as to provide for only two deductions, namely an amount equal to thirty percent of the annual value, and the interest paid on capital borrowed for acquiring, constructing, repairing, renewing or reconstructing the property. It is also proposed to make consequential amendments by inserting a new section 25AA and amending section 25, 25A, 25B, 27 and 80GG of the Income-tax Act. These amendments will take effect from 1 st April, 2002, and will, accordingly, apply in relation to the assessment year 2002-2003 and subsequent years. [Clauses14, 15, 16, 17, 18, 19, 20 and 38]

Hence according to me the actual nav for the above situation is rs. 9400

Plz clarify me...... 

Originally posted by : Pooja Singh
	1.Resonable expeted rent(MV or FR which ever is higher but subject to SR)-------                         14,400 2.Rent received or receivable after deducting unrealized rent of the current previous year but before adjusting loss due to vacancy                                                                              -------         12,000 3.Higher of the 1 & 2                                                                                                                   --------        14,400 4Less:.Loss due to vacancy                                                                                                      -----------   5.000 5. GAV (3-4)                                                                                                                                   -----------     9,400 Plz correct if i m wrong

This is exactly correct. For those students who are taking Girish Sir's classes, i would like to say, instead of going through his books on this provision try some other writers or if you have good understanding of legal language, go through the bare act itself to know the actual process.
I would like to clarify that i myself studied form his ( Girish Sir's) book and he is a great teacher but on this provision he is a bit confused.

Agree with Prakash jha .If you interprete the bare act the correct answer is rs. 9400

@ sudipta- Its Prakash RAI not JHA lolz!