Income From HP

Dear Deepu,

In my opinion HP-2 deemed to be let out and deemed income should be taxable under the head of income from House property.

In your case,

GAV Nil due to vacancy but it is wrong to say that GAV Nil due vacancy cause if Expected rent is higher than Actual rent then higher should be taxable.

The rent is the highest of below -

1. Fair Market Value
2. Municipal valuation.

then higher of above rent and Standard rent as per RENT CONTROL ACT lower of both shall be expected rent for the calculation of GAV.

Now,

Higher of

Expected rent

and

Rent received or receivable

should be taxable under the head of "INCOME FROM HOUSE PROPERTY"

Regards

MAYANK KUMAR JHA

 Hi all,

I will put it  like this:

Municipal Value 12,00,000

Fair Rent             15,00,000

Standard Rent    10,00,000

Expected & Actual Rent Receivable (Rs. 1 Lac for 12 months) :12,00,000

Vacancy: 12 months

Please advice me what would be the GAV?.

Thanks