income from house property

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krina (Querist)
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09 February 2011 HRA

sir,
can vacancy clause be dedudcted from fair market rent incase it is higher on actual rent??

i read in a book that it can be deducted 4m AR i.e actucal rent but what if the market value is higher wil it be deducted 4m it still ??

if possible can u expalin with an example ??

thankss ...

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 February 2011 can vacancy clause be dedudcted from fair market rent in case it is higher on actual rent??

Ans : Yes it can be deducted from Fair Rent.

You must clear the following terms in your mind-
1. Reasonable Expected Rent
2. Annual Rent
3. Actual Rent
4. Rent Receivable after deducting Unrealized Rent.
( From this vacancy loss has not to be deducted)

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