Income from house property

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Mansi srivastava (Querist)
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16 May 2013 what is the gross annual value?

municipal value = 36000
fair rental value = 40000
standard rent = 50000
actual rent = 48000

ans given in book is 48000....why so?

we consider (i) expected rent (ii) actual rent......whichever is higher..

in the above case expected rent should be 50000 because its more than mv and frv and is also higher than actual rent i.e 48000....plese clear my doubt..

thanks
regards
Mansi

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Guest (Expert)

16 May 2013 Ist step :
M V 36000 or
FRV 40000,

Higher is selected i.e 40000

IInd step:
ERV can not exceed Standard rent value
hence higher value in step I or Standard Rent which ever is lower. i.e. 40000 or 50000

40000 is selected.

Now compare ERV with actual rent.
i.e 40000 or 48000, whichever is higher is selected.

48000 is higher, that's why it is the answer in the book

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Mansi srivastava

Mansi srivastava (Querist)
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16 May 2013 oh...!! i had skipped 2nd step nd thts y i ws getting confused....thanks sir for clearing my doubt.

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