IMP...House Property Computation...Sec 23(1)

 

Please solve the following query with regard Sec 23(1)

While computing GAV of House property which is PARTLY LET OUT AND PARTLY VACANT during the year.....

In case the actual rent recieved/recievable is lower than Annual Letting Value (ALV), due to reasons other than loss from vacancy,  which of the following is to be taken as GAV...
i)  ALV....OR
ii) ALV - Loss due to vacancy..

There are severe queries regarding this. Different authors have different interpretations.
Wt do v do for our exams.....?????
Please clarify....!!!
Replies (4)

dear kunal 

if the loss is partly due to vacancy and partly due to other factors then the secon option is applicable

if the loss is due to other  factors only then the GAV will be the annual expected rent of the property

Both MR singhania and  MR ahuja are of the same opinion

lets see wht the others feel

now i have a query frnds,

tax frm income from house property is a tax on the inherent capacity of the property to yeild income.

Keeping  the above concept in mind plz tell that if the rent received is less than the expected rent because of loss due to vacancy,then why the deductible amount, of loss due to vacancy is calculated on the rate of Actual rent?

yeah shuvro.....ive seen singhania n d xplanation seems right.....but ne clue wat v could do for d exams....since d module differs.... i hv mah pcc dis may...!!!

n ur query.... acc 2 me... dats coz had v let out d property, v can safely assume, that v would have recieved dat much more rent....

d alv represents d capacity 2 yeild income for d full yr....n as d prop. is vacnt it hz 2 b reducd !!!

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