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QUE . Please tell me the difference between annual value of house property and reasonable rent?

As far as my knowledge Annual value of any hp is the inherent capacity of any hp tp yeild income or potentiol of any hp to generate income or the rent earning capacity of any hp and the expected reasonable rent of hp if it is let out from year to year is the reasonable or expected rent.

From the above two defination of Annual valur and reasonable rent both looks similar and i am not able to differniate between them as annual value is defined by sec23(1) whereas Reasonable rent is defined by sec. 23(1) (a)

please explain me the differnce between them as they both looks similar with proper examples..................

thanks in advance

Replies (1)

Amir

Learner

4898 Points Posted on 19 April 2010

Dear Anuj, Don't get confused Bhai......! Annual Value OR what is popularly calledas GAV- It is the term which is used to define the amount that will be taxable under head Income from House Property (after deducting certain things like MUNICIPAL TAXES, STANDARD DEDUCTION AND INTEREST) Reasonable rent or Expected Rent - It is one of the component that is used in computing the GAV. Like it is compared with Standard Rent, Actual rent, etc before arriving at GAV.