What will be its GAV?

764 views 11 replies

Can anyone solve this

House property is self occupied up to 30 June 2009 and let out there after at Rs. 4000 p.m. rent.

Municipal valuation = Rs.45000


What will be its GAV?

1. Rs. 45000 (Municipal valuation)

2. Rs. 39000. (4000 x 9 months)

3. Rs. 48000. (4000 x 12 Months).

Replies (11)

In this case Rs. 45000/- shall be taken as the GAV as it is higher than actual rent received .

If a Property is let out for some period and self occupied for some period then the GAV would be Fair rent or Actual Rent which ever is higher as per Sec 23(3)

In the above case: Actual Rent =48000/- Fair Rent=45000/-

As per My view GAV =48000/-

Manasa

Dear Afzal

First step - Higher of Municipal Vakuation or FMV

MV = 45,000

FMV = 48,000

Therefore Value under first step will be Rs. 48,000

Second Step - Value under First step should not exceed Standard Rent

Since Standard Rent is not given therefore, Value under Step 2 will be Rs. 48,000

Third Step - Higher of Acual Rent or Vlue under Step 2

Actual Rent = 45,000

Value under Step 2  = 48,000

Value under Step 3 will be Rs. 48,000, since property was not lying vacant therefore GAV will be Rs. 48,000

In T.N. Manoharan the answer is Rs. 45000 i.e. Municipal valuation. It says that fair rent is Municipal valuation. Is  it correct as I thinks that Fair rent should be Rs. 48000 (4000 x 12).

 

And hence GAV should come to Rs. 48000 (4000 x 12).

Dear Afzal,

then it is a matter of assumption...Both answers will be correct if u will mention ur assumption.

I am agree with manasa answer

Mr. Afzal

Amir is absolutely correct!!!

If a Property is let out for some period and self occupied for some period then the GAV would be Fair rent or Actual Rent which ever is higher as per Sec 23(3)

 

In the above case: Actual Rent =48000/- Fair Rent=45000/-

 

As per My view GAV =48000/-

Yea Afzal it all depends upon the assumptions u give..but for me too since there is no vacancy GAV is 48000

dear afzal,

GAV is, Muncipal valuation or Fair Rental value whichever is higher. in your problem there is no specified Fair rental value. but you can assume FRV on the basis of let out amount. if you do so then

GAV will be 48000/-

In this problem, the house property will be deemed to be let out through out the year and the benefit of self occupied house property will not be available to the assessee. As such, GAV will be Rs. 48,000/- 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details