Income from House Property doubt
why taxable value is calculate on Expected rent since it is not actually earned by assessee and also taken Expected rent and actual rent receivable whichever is more supppose actual rent receivable is only 100000 and expected rent is 200000 in this case assessee is not earning 200000 but tax will be conclude on this
Replies (3)
Quick Summary
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
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