GAV for house property vacant for whole year.

What shall be GAV for house property that was vacant for whole year?
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Quick Summary
If your house property has been vacant for the entire year, its Gross Annual Value (GAV) is generally considered NIL. This is because the Annual Value is calculated as the rent you could have earned if it were let out, but if it remains unoccupied, this notional rent is zero. This benefit of NIL Annual Value applies to self-occupied or unoccupied properties, up to a maximum of two such properties for individuals and HUFs.

GAV would be the Notional rent I.e.rent one could have earned in case property had been let out and the same shall be taxable.

As per Section 23(2) of the Income Tax Act where the property was occupied for own residence or unoccupied / vacant throughout the previous year , its Annual Value shall be NIL, provided no other benefit is derived by owner of the property. 

The benefit of NIL Annual Value is available only upto two self occupied/ unoccupied house properties. i.e either one or two house properties owned by the assessee can have a NIL Annual Value. This benefit is available only for Individual/HUF. 

No deduction of muncipal taxes in respect of such property.

Unoccupied property refers to a property which cannot be occupied by owner by reason of his employment or business or profession at a different place and he resides at such other place in a building not belonging to him.

 

#Esh*ta S Shah ...if it is commercial property then aslo SOP benefit can be claimed and GAV as NIL

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