House property

 the Standard Rent is Rs. 1,50,000/- and the actual rent recovered is Rs 180000 than your inome  is 180000

I know that Rs. 1,80,000/- has to be taken as Gross Annual Value. But my question is whether the income so earned is illegal ? Because if it is illegal then the treatment would be different right ?

no it is not illegal income at all.

Renting the property is absolutely a legal business and if you get more than standard rent then it is not at all illegal .

The Standard rent would be Rs. 180000/- and there is noting illegal about it.

It is not an illegal income. Standard rent is the rent fixed by the sate govt. for a particular area. Nowhere it specified that the landlord can't charge more rent. Therefore the full rent is legal.

I thank everyone for their contributions to clear my doubt. But it has been mentioned that Standard Rent is the maximum rent that a person can LEGALLY recover from his tenant under the Rent Control Act. I understand that letting a house property is not illegal but recovering a sum which is above the standard rent is not legal as per the definition. Therefore the excess amount collected above the standard rent has to be treated as illegal ?

The sentence in bold has been picked up from Income Tax Ready Reckoner and this has been given as a note in it.

Look friend, Govt. can only specify the minimum amount (that automatically becomes legal, since Govt. has specified that) to be considered as the basis for the collection of revenue, it leads to open market scenerio with controlled competitive limitations to avoid any tax manipulations.

If you are able to draw more than what Govt. has specified then that is due to the open market scenerio within controlled competetive conditions. Anything done under that environment is legal itself.

So, 1.80 L is 100% legal.