Income from house property
This query is : Resolved
29 January 2016
Reasonable expected rent will be higher of the following:
Municipal value of the property (Note 1); or
Fair rent of the property (Note 2).
If a property is covered under Rent Control Act, then the reasonable expected rent cannot exceed standard rent (Note 3).
Note 1: Meaning of Municipal Value
For collection of municipal taxes, local authorities make periodic survey of all buildings in their jurisdiction. Such value determined by the municipal authorities in respect of a property, is called as municipal value of the property.
Note 2: Meaning of Fair Rent
It is the reasonable expected rent which the property can fetch. It can be determined on the basis of rent fetched by a similar property in the same or similar locality.
Note 3: Meaning of Standard Rent
It is the maximum rent which a person can legally recover from his tenant under the Rent Control Act. Standard rent is applicable only in case of properties covered under Rent Control Act.
Reasonable expected rent will be higher of the following:
Municipal value of the property (Note 1); or
Fair rent of the property (Note 2).
If a property is covered under Rent Control Act, then the reasonable expected rent cannot exceed standard rent (Note 3).
Note 1: Meaning of Municipal Value
For collection of municipal taxes, local authorities make periodic survey of all buildings in their jurisdiction. Such value determined by the municipal authorities in respect of a property, is called as municipal value of the property.
Note 2: Meaning of Fair Rent
It is the reasonable expected rent which the property can fetch. It can be determined on the basis of rent fetched by a similar property in the same or similar locality.
Note 3: Meaning of Standard Rent
It is the maximum rent which a person can legally recover from his tenant under the Rent Control Act. Standard rent is applicable only in case of properties covered under Rent Control Act.
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