Income from House Property.
Property is let out for 20000 per month,but is vacant for 2 months in the year.
Std. Rent is 240000 (annual)
Annual Rent 240000 (20000 x 12)
Actual Rent 200000 (20000 x 10)
so what is the GAV??
240000 or 200000?
rule says if actual rent is less than RLV (in this case std rent) because of VACANCY, then we take actual rent as GAV.
however, in this case actual rent is less than RLV not because of vacancy but because the rent is only low. coz even if there was no vacancy rent would still be 240000 only and not more than that. so i think RLV should be 240000, but my frnz think otherwise. plz advice. acc to me if annual rent was more than 240000 (250000 for example) and we received only 200000 then we would take 200000, but not if its <= 240000.
thanking you in advance.
CAclubindia
