i have confusion adjustment of vacancy allowance for computing income from house property
1. In one of the book (ainapure-tybaf, mumbai university)income has been calculated as follows :
I.Reasonable letting value 150
II.acutalrent(vac.loss-10) 130
III.gross annual value = 150
Reason : (since RLV is higher than actual rent and even if there is no vacancy loss ie. 130+10=140, still RLV would have been greater than the acutal rent recd/receivable. If acutal rent would have been lower than the RLV on account of vacancy then actual rent although less than the RLV still actual rent would have been taken as GAV)
2. However in VK singhania treatment is different
I.Resonable letting value 150
II.actual rent received/receivable 140
III.Higher of I OR II 150
IV LESS: vacancy loss 10
v III-IV = GROSS ANNUAL VALUE 140
(Every problem has been solved in the above format and there was no mention of taking actual rent as GAV if the same is lower than the RLV on account of vacancy which was mentioned in the 1st case)
referring provisions of the income tax act 1961,
the first mentioned explanation holds good.
also in the second case mentioned by you ,
RLV=150, ACTUAL RCVD 140, VACCANCY LOSS 10,
IN THIS CASE IF WE APPLY THE PROVISION IT STANDS LIKE THIS
ACTUAL RENT RECEIVED OWING TO VACCANCY =140,IF WE ADD VACCANCY LOSS OF 10 IT COMES TO 150 WHICH IS EQUAL TO RLV,
HENCE IN THE GIVEN CASE GAV WOULD BE ACTUAL RENT RECEIVED =140 BEACAUSE ITS LESS THAN 150 OWING TO VACCANCY.
I DONOT KNOW ANOUT REST OF THE QUESTIONS IN VK SINGHANIA'S BOO, BUT THE EXAMPLE MENTIONED BY YOU IS CORRECTLY SOLVED.
DEAR FRIEND , ALWAYS GO THROUGH THE PROVISIONS OF THE ACT AND APPLY IT , IF YOU HAVE DISCREPANCIES IN ANSWERS OF TWO BOOKS, GO THROUGH THE PROVISIONS OF THE ACT,
