PROPERTY EVALUATION

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For filing your Income Tax Return on house property income for assessment year 2023-2024, a formal evaluation report is not mandatory, even if your rental income exceeds fifty lakhs per annum. The annual value of your property is determined by the actual rent received, its municipal value, and the fair rent it could command in the locality. You only need to provide a fair market value if it's otherwise unavailable.

PARDEEP KAPIL

PARDEEP KAPIL (Querist)

19 July 2023 Dear Sirs : My query is :::: For filing of Income Tax Return on income from house property for assessment year 2023-2024, Is it mandatory to mention evaluation report for property rented in income tax return . Kindly advise. Regards

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

19 July 2023 No. Not mandatory.

PARDEEP KAPIL

PARDEEP KAPIL (Querist)

19 July 2023 SIR : The rental income is this case is above Rs. fifty lakhs

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

19 July 2023 Annual value of the house property is based on the following factors:-

A) Actual rent received or receivable – This is the actual rent received/receivable by the owner of the house property on letting the house property.

B) Municipal value – This is the value as determined by the Municipal authorities for levying Municipal taxes on house property. Municipal authorities normally charge house tax/Municipal taxes on the basis of annual letting value of such house property.

C) Fair rent – Fair rent is the rent which a similar property can fetch in the same or similar locality, if it is let out for a year.

So, no need for its evaluation report while filing ITR, even if rental income is above Rs. 50 lakhs. In case of any query, you may submit it provided fair market value is not available otherwise.

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