Income tax

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18 April 2010 QUE . Please tell me the difference between annual value of house property and reasonable rent?

As far as my knowledge Annual value of any hp is the inherent capacity of any hp tp yeild income or potentiol of any hp to generate income or the rent earning capacity of any hp and the expected reasonable rent of hp if it is let out from year to year is the reasonable or expected rent.

From the above two defination of Annual valur and reasonable rent both looks similar and i am not able to differniate between them as annual value is defined by sec23(1) whereas Reasonable rent is defined by sec. 23(1) (a)

please explain me the differnce between them as they both looks similar with proper examples..................

thanks in advance

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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18 April 2010 Sec.23(1) Dealing with the Gross annual value and Sec.23(1)(a) dealing with Resonale expected rent. First you need to find out the resonaable expected rent which is Higher of Municipal value and Fair vaule but subject to maximum of Standard rent - after this calculation what you get the vaule should be compare with the value of the rent actually received the higher of those amount is the Gross annual value u/s.23(1)

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