How to compute reasonable expected rent while computing gross annual value of a property which is throughout the year?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 kiran asked almost 3 years ago

Hi I am preparing for CA exam. I want to know about income tax. Can I know, How to compute reasonable expected rent while computing gross annual value of a property which is let-out throughout the year? ​

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4 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 2 years ago

If a property is covered under Rent Control Act, then the reasonable expected rent cannot exceed standard rent (Note 3). Note 1: Meaning of Municipal Value For collection of municipal taxes, local authorities make periodic survey of all buildings in their jurisdiction. Such value determined by the municipal authorities in respect of a property, is called as municipal value of the property. Note 2: Meaning of Fair Rent It is the reasonable expected rent which the property can fetch. It can be determined on the basis of rent fetched by a similar property in the same or similar locality.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 HIMANSHU answered almost 3 years ago

Municipal value of the property (Note 1); or Fair rent of the property (Note 2). If a property is covered under Rent Control Act, then the reasonable expected rent cannot exceed standard rent (Note 3). Note 1: Meaning of Municipal Value For collection of municipal taxes, local authorities make periodic survey of all buildings in their jurisdiction. Such value determined by the municipal authorities in respect of a property, is called as municipal value of the property. Note 2: Meaning of Fair Rent It is the reasonable expected rent which the property can fetch. It can be determined on the basis of rent fetched by a similar property in the same or similar locality. Note 3: Meaning of Standard Rent It is the maximum rent which a person can legally recover from his tenant under the Rent Control Act. Standard rent is applicable only in case of properties covered under Rent Control Act.

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Picsjoin 2017224123730582 Archana answered almost 3 years ago

Hie Kiran, Reasonable expected rent will be higher of the following: Municipal value of the property (Note 1); or Fair rent of the property (Note 2). If a property is covered under Rent Control Act, then the reasonable expected rent cannot exceed standard rent (Note 3). **Note 1: Meaning of Municipal Value** For collection of municipal taxes, local authorities make periodic survey of all buildings in their jurisdiction. Such value determined by the municipal authorities in respect of a property, is called as municipal value of the property. **Note 2: Meaning of Fair Rent** It is the reasonable expected rent which the property can fetch. It can be determined on the basis of rent fetched by a similar property in the same or similar locality. **Note 3: Meaning of Standard Rent** It is the maximum rent which a person can legally recover from his tenant under the Rent Control Act. Standard rent is applicable only in case of properties covered under Rent Control Act.

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered almost 3 years ago

Dear Friend, as far as your query is concerned that How to compute reasonable expected rent while computing gross annual value of a property which is throughout the year? Let me informed that Reasonable expected rent will be higher of the following: Municipal value of the property (Note 1); or Fair rent of the property (Note 2). If a property is covered under Rent Control Act, then the reasonable expected rent cannot exceed standard rent (Note 3). Note 1: Meaning of Municipal Value For collection of municipal taxes, local authorities make periodic survey of all buildings in their jurisdiction. Such value determined by the municipal authorities in respect of a property, is called as municipal value of the property. Note 2: Meaning of Fair Rent It is the reasonable expected rent which the property can fetch. It can be determined on the basis of rent fetched by a similar property in the same or similar locality. Note 3: Meaning of Standard Rent It is the maximum rent which a person can legally recover from his tenant under the Rent Control Act. Standard rent is applicable only in case of properties covered under Rent Control Act. Hope answer was helpful to you Regards, Arjun Pratap Singh

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