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 (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)
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
which one is correct. waiting for views of the experts
21 June 2012
Vacancy loss would be different in both cases.if calculated on actual it would be Rs. 10 and if calculated on RLV it would be more than Rs. 10 (i.e.10.71)
CAclubindia
