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GAV for house property vacant for whole year.

sukhwani keyur (588 Points)

01 May 2020

What shall be GAV for house property that was vacant for whole year?

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3 Replies

Kiran Hathalia (831 Points)
Replied 01 May 2020

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.

Eshita S Shah (Practicing CA ) (75 Points)
Replied 01 May 2020

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.