Income from House Property doubt

Adjust in loss due to vacancy or unrealised rent

A house in the same locality would fetch a rent higher (expected rent) than what the assessee has declared ( actual rent) . A prudent man wouldn't receive rent lower when a higher one can be received. If it happens so, it might be because assessee is suppressing his income by way of not being prudent. To avoid this, the taxable value ( gross annual value) is expected rent or actual rent whichever is higher

If the house is vacant for few months in a FY then annual rent need not be declared which is unrealised due to vacancy