Loss due to vacancy

Hi

GAV = 3,30,000

Vacancy allowance will be= Nil. As there is no loss due to vacancy as expected rent exceeds actual rent.

For any further query PM or mail me.

AJH & CO.

anubhavjain @ ajhco.in

Actual Rent for 12months wud have been Rs. 330,000 

Hence, Actual rent is lower not becoz of vacancy its becoz of other factors also.

A.R < F.R becoz of any other factors also So RLV should be taken as annual Value(GAV) So GAV should be Rs. 360,000

Agreed

GAV will be 360000

I had solved as per steps given in Vinod Singhania Book....

Step 1: Reasonable Expected Rent

a.Higher of Fair Rent vs Municipal Valuation ----- Higher of 4,00,000 Vs 3,00,000

b.Lower of answer in a Vs Standard Rent ----- 4,00,000 Vs 3,60,000

So Reasonable Expected Rent is 3,60,000

Step 2: Actual Rent of the Property after deducting Unrealised rent before considering Loss due to vaccancy

a. Rent of the property for the Previous Yr it was actually available for let out (assumed it was available for let throught the PY) - 27500*12---------- 3,30,000

b. Less : Unrealised Rent --------------- 0

c. Rent of the property (Annual Rent) ---------- 3,30,000

Step 3: Higher of Step 1 answer vs Step 2 answer

Higher of 3,60,000 Vs 3,30,000

Step 4: Loss due to Vaccancy 27500*3 -------- 82,500

Step 5: Gross Annual Value = Step 3 answer minus Step 4

GAV = 3,60,000 - 82,500 --------> 2,77,500

In the given problem calculation of GAV for two step.

1. if vacency period Are Given given.

than, GAV= Fair Value&MV which is higher

But <= Standard Value

so GAV=Rs.360000 and,

2. ARRR Ex. U Rent or Vacency =(Rs.27500*9=Rs.247500) and,if including vacency period rent(ie.Rs.330000) which not exceed GAV(step-I)

so, GAV=Rs.360000.

Note:- If ARRR Including Vacency Exceed GAV in step-1 than,

GAV=ARRR.

In the given problem calculation of GAV for two step.

1. if vacency period Are Given given.

than, GAV= Fair Value&MV which is higher

But <= Standard Value

so GAV=Rs.360000 and,

2. ARRR Ex. U Rent or Vacency =(Rs.27500*9=Rs.247500) and,if including vacency period rent(ie.Rs.330000) which not exceed GAV(step-I)

so, GAV=Rs.360000.

Note:- If ARRR Including Vacency Exceed GAV in step-1 than,

GAV=ARRR.