Section 25A &Section 25AA

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This query is : Resolved

Miss Rinkal (Querist)

10 January 2009 It is my kind request to solve my queries since I cannot understand how it should be considered as per the I.T Act. Hope I would get the answer with respect to the given question

1. What would be the GAV when RLV is greater than Actual Rent even if Actual Rent is lesser due to vacancy? Would vacancy be deducted from RLV so ascertained or such vacancy rent is deducted only from Actual Rent while determining GAV?
In the given example what would be the GAV?
Municipal Valuation Rs 70000/-
Fair Rent Rs 75000/-
Standard Rent Rs 60000/-
Actual Rent Rs 8000/-
Property Vacant (in months) 10
Vacancy Rent Rs 40000/-

2. What is the taxable Income from House Property for the A.Y 2008-09 & A.Y 2009-10?
Case A Case B
Municipal Valuation 380000 340000
Fair Rent 370000 390000
Standard Rent 340000 340000
Actual Rent 432000 350000
Unrealised Rent of P.Y 2008-09 (Allowable as per Rule 4) 60000 60000
Municipal taxes paid 76000 76000
Interest on Loan due 72000 72000
Unrealised Rent recovered in P.Y 2008-09 56000 56000

CA Mani

CA Mani (Expert)

10 January 2009 In the first case, lesser rent is not due to the reason of vacancy. i.e. Even If the property is fully occupied throughout the year also fair rent is higher than actual rent.

Hence deduction for vacant period is not available.

So, Income = 75,000

Miss Rinkal

Miss Rinkal (Querist)

12 January 2009 Would Vacancy Rent be allowed to be deducted from Fair Rent(FR) or Municipal Valuation (MV) or Standard Rent (SR) or it is allowed to be deducted only from Actual Rent (AR)? i.e if FR or MV or SR is more than AR then FR ,MV or SR would be taken as GAV then in that case, would vacancy Rent be allowed to be deducted ffor determination of GAV

Miss Rinkal

Miss Rinkal (Querist)

21 January 2009 Would Vacancy Rent be allowed to be deducted from Fair Rent(FR) or Municipal Valuation (MV) or Standard Rent (SR) or it is allowed to be deducted only from Actual Rent (AR)? i.e if FR or MV or SR is more than AR then FR ,MV or SR would be taken as GAV then in that case, would vacancy Rent be allowed to be deducted
for determination of GAV