AFZAL SHERJI (CA) (262 Points)
12 February 2010Can anyone solve this
House property is self occupied up to 30 June 2009 and let out there after at Rs. 4000 p.m. rent.
Municipal valuation = Rs.45000
What will be its GAV?
1. Rs. 45000 (Municipal valuation)
2. Rs. 39000. (4000 x 9 months)
3. Rs. 48000. (4000 x 12 Months).
ashish gupta
( student)
(1922 Points)
Replied 12 February 2010
In this case Rs. 45000/- shall be taken as the GAV as it is higher than actual rent received .
CA Manasa
(CA)
(1479 Points)
Replied 12 February 2010
If a Property is let out for some period and self occupied for some period then the GAV would be Fair rent or Actual Rent which ever is higher as per Sec 23(3)
In the above case: Actual Rent =48000/- Fair Rent=45000/-
As per My view GAV =48000/-
Manasa
Amir
(Learner)
(4016 Points)
Replied 12 February 2010
Dear Afzal
First step - Higher of Municipal Vakuation or FMV
MV = 45,000
FMV = 48,000
Therefore Value under first step will be Rs. 48,000
Second Step - Value under First step should not exceed Standard Rent
Since Standard Rent is not given therefore, Value under Step 2 will be Rs. 48,000
Third Step - Higher of Acual Rent or Vlue under Step 2
Actual Rent = 45,000
Value under Step 2 = 48,000
Value under Step 3 will be Rs. 48,000, since property was not lying vacant therefore GAV will be Rs. 48,000
AFZAL SHERJI
(CA)
(262 Points)
Replied 12 February 2010
In T.N. Manoharan the answer is Rs. 45000 i.e. Municipal valuation. It says that fair rent is Municipal valuation. Is it correct as I thinks that Fair rent should be Rs. 48000 (4000 x 12).
And hence GAV should come to Rs. 48000 (4000 x 12).
Amir
(Learner)
(4016 Points)
Replied 12 February 2010
Dear Afzal,
then it is a matter of assumption...Both answers will be correct if u will mention ur assumption.
Vatsalya Bhardwaj
(Final Student)
(427 Points)
Replied 12 February 2010
Mr. Afzal
Amir is absolutely correct!!!
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 12 February 2010
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 12 February 2010
Yea Afzal it all depends upon the assumptions u give..but for me too since there is no vacancy GAV is 48000
vivek singhal
(Chartered accountant)
(79 Points)
Replied 19 February 2010
dear afzal,
GAV is, Muncipal valuation or Fair Rental value whichever is higher. in your problem there is no specified Fair rental value. but you can assume FRV on the basis of let out amount. if you do so then
GAV will be 48000/-
Vedant Agarwal
(Chartered Accountant)
(46 Points)
Replied 03 March 2010
In this problem, the house property will be deemed to be let out through out the year and the benefit of self occupied house property will not be available to the assessee. As such, GAV will be Rs. 48,000/-
CAclubindia
