If a house property was occupied for 8 months say from 1/4/08 to 1/8/08 for 5000 rs per month and from 1/12/09 to 1/4/09 for 7500 per month and subsequently the selected value of Municipal value Standard rent and fair rent works out to be higher than actual rent of 50,000 (5000*4 + 7500*4). So to check out with selected value for reasons due to vacany or not which rent will be taken for the vacant 4 months..whether 4*5000 or 4*7500????
Menu
GAV for property with vacancy
Replies (7)
5000/- should be taken for vacancy period.............................
yeah 5000 has to be charged.
Yeas, Rs. 5000/- should be taken as vacancy period rent and calculated accordingly...
In this case, Rs. 5000/- should be considered as rent for vacant period because up to 01/08/2008 he has let out the property @ 5000/- and the assessee doesn't know whether he can receive more than 5000 or not. Further, upto the date when vacancy period starts, last rent received or receivable per month is Rs. 5000/-. Only after 01/12/2008, assesee received Rs. 7500/- per month.
So, as per my opinion, Rs. 5000/- should be considered as monthly rent for vacancy period.
tanx exery1...glad that every1 share the same view...
In order to reduce tax burden, you can also take Rs.7500 as rent during vacancy period and satisfy the assessing officer that the vacancy occured only due to upward revision of rent.
Recent Threads
- ITR 2 Processed and Refund Credited to Bank
- Freelancer or Salaried
- LTCG Tax & Indexation on Debt Mutual Funds Sol
- Section 45(5A) and 194IC with carry forward of tds
- Paid tax amount, CIN generated and challan downloa
- INTRADAY INCOME PRESUMPTIVE INCOME
- Clarification on Deemed Export Status for EOU-to-E
- LTCG Tax on property
- Short term gain in itr2, missing 111A
- Errors in ITR Filing: Minimum One Character Requir
Related Threads
CAclubindia
