Help regarding claculation of gav in ihp

HI SABIA ,

   YOU CAN CALCULATE GAV IN THE FOLLOWING MANNER

GAV = HIGHER OF THE FOLLOWING-

1. MARKET VALUE OR

2. FAIR RENT

BUT SUBJECT TO STANDARD RENT. IT MEANS AFTER CALCULATING ABOVE VALUE MINIMUM OF STANDARD RENT OR ABOVE VALUE WILL BE YOUR GAV.

AFTER CALCULATING GAV DEDUCT MUNICIPAL TAXES PAID U WILL GET NAV

HOPE IT WILL HELP U 

MOHIT GOYAL

7503922975

Hi Sabia,

Plz find the attached sheet for detailed calculation of GAV in case of Letout property.

Rgds,

Sanat

Gross Annaul Value is Higher of

1. Actual Rent Received or Receiviable

2. Annual Reasonable Expect Rent

Now Let's See what is Annual Reasonable Expect Rent: It is higher of

1. Fair Rent(FR)

2. Muncipal Value(MV)

But limited to Standard Rent(SR)

for example if FR-25000, MV-30000, SR-45000 in that case Annual Reasonable Expect Rent will be 30,000 because higher of FR and MV is 30,000 which is under SR-45000.

Let see another example FR-50000, MV-35000 and SR-45,000 in that case the SR become applicable because the higher of FR and MV is 50,000 which greater than SR-45,000 therefore Annual Reasonable Expect Rent will be 45,000

Now go back to the GAV which higher of

1. Actual Rent 50000

2 Expected Rent: 45000 ( explanation in second example above)
a)FR-50000
b)MV-35000
c) SR-45000

Therefore GAV will be 50,000

Hope this will solve your doubt.

Plz find the attached sheet for GAV calculation in 4 different situations.

The processes are same in all the situations.