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Find out the gross annual value from the following Particulars Rs. Municipal Valuation 1,80,000 Fair rent 1,90,000 Standard Rent NA Actual Rent 1,40,000 Let out period 8 months Self-occupied period 4 months?
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Find out the gross annual value from the following Particulars Rs. Mun...
Gross Annual Value Calculation
The Gross Annual Value (GAV) of a property is the amount for which the property might be reasonably expected to be let out from year to year. It is the basis for calculating the income tax liability of the owner of the property. In order to calculate the GAV, the following factors need to be taken into consideration:
Municipal Valuation
The Municipal Valuation is the value of the property as determined by the local civic authorities for the purpose of levying property tax. In this case, the Municipal Valuation is Rs. 1,80,000.
Fair Rent
The Fair Rent is the rent that can be reasonably expected to be received for the property, taking into account factors such as location, amenities, and other relevant factors. In this case, the Fair Rent is Rs. 1,90,000.
Standard Rent
The Standard Rent is the rent fixed by the Rent Control Act for a particular property. In this case, the Standard Rent is not applicable.
Actual Rent
The Actual Rent is the rent that is actually received by the owner of the property. In this case, the Actual Rent is Rs. 1,40,000.
Let Out Period
The Let Out Period is the period for which the property is let out to a tenant. In this case, the Let Out Period is 8 months.
Self-Occupied Period
The Self-Occupied Period is the period for which the owner of the property occupies the property for his/her own use. In this case, the Self-Occupied Period is 4 months.
Calculation of GAV
The Gross Annual Value of the property can be calculated as follows:
GAV = (Fair Rent or Municipal Valuation, whichever is higher) x (Let Out Period + Vacancy Period) + (Actual Rent for Self-Occupied Period)
In this case, the higher of the Fair Rent and Municipal Valuation is Rs. 1,90,000. The Vacancy Period is the period for which the property is vacant, i.e., not let out to a tenant. In this case, the Vacancy Period is 12 months - (Let Out Period + Self-Occupied Period) = 12 - (8 + 4) = 0 months.
Therefore, GAV = Rs. 1,90,000 x (8 + 0) + Rs. 1,40,000 x 4 = Rs. 15,20,000.
Hence, the Gross Annual Value of the property is Rs. 15,20,000.
The Gross Annual Value (GAV) of a property is the amount for which the property might be reasonably expected to be let out from year to year. It is the basis for calculating the income tax liability of the owner of the property. In order to calculate the GAV, the following factors need to be taken into consideration:
Municipal Valuation
The Municipal Valuation is the value of the property as determined by the local civic authorities for the purpose of levying property tax. In this case, the Municipal Valuation is Rs. 1,80,000.
Fair Rent
The Fair Rent is the rent that can be reasonably expected to be received for the property, taking into account factors such as location, amenities, and other relevant factors. In this case, the Fair Rent is Rs. 1,90,000.
Standard Rent
The Standard Rent is the rent fixed by the Rent Control Act for a particular property. In this case, the Standard Rent is not applicable.
Actual Rent
The Actual Rent is the rent that is actually received by the owner of the property. In this case, the Actual Rent is Rs. 1,40,000.
Let Out Period
The Let Out Period is the period for which the property is let out to a tenant. In this case, the Let Out Period is 8 months.
Self-Occupied Period
The Self-Occupied Period is the period for which the owner of the property occupies the property for his/her own use. In this case, the Self-Occupied Period is 4 months.
Calculation of GAV
The Gross Annual Value of the property can be calculated as follows:
GAV = (Fair Rent or Municipal Valuation, whichever is higher) x (Let Out Period + Vacancy Period) + (Actual Rent for Self-Occupied Period)
In this case, the higher of the Fair Rent and Municipal Valuation is Rs. 1,90,000. The Vacancy Period is the period for which the property is vacant, i.e., not let out to a tenant. In this case, the Vacancy Period is 12 months - (Let Out Period + Self-Occupied Period) = 12 - (8 + 4) = 0 months.
Therefore, GAV = Rs. 1,90,000 x (8 + 0) + Rs. 1,40,000 x 4 = Rs. 15,20,000.
Hence, the Gross Annual Value of the property is Rs. 15,20,000.
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Find out the gross annual value from the following Particulars Rs. Municipal Valuation 1,80,000 Fair rent 1,90,000 Standard Rent NA Actual Rent 1,40,000 Let out period 8 months Self-occupied period 4 months?
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Find out the gross annual value from the following Particulars Rs. Municipal Valuation 1,80,000 Fair rent 1,90,000 Standard Rent NA Actual Rent 1,40,000 Let out period 8 months Self-occupied period 4 months? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Find out the gross annual value from the following Particulars Rs. Municipal Valuation 1,80,000 Fair rent 1,90,000 Standard Rent NA Actual Rent 1,40,000 Let out period 8 months Self-occupied period 4 months? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Find out the gross annual value from the following Particulars Rs. Municipal Valuation 1,80,000 Fair rent 1,90,000 Standard Rent NA Actual Rent 1,40,000 Let out period 8 months Self-occupied period 4 months?.
Find out the gross annual value from the following Particulars Rs. Municipal Valuation 1,80,000 Fair rent 1,90,000 Standard Rent NA Actual Rent 1,40,000 Let out period 8 months Self-occupied period 4 months? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Find out the gross annual value from the following Particulars Rs. Municipal Valuation 1,80,000 Fair rent 1,90,000 Standard Rent NA Actual Rent 1,40,000 Let out period 8 months Self-occupied period 4 months? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Find out the gross annual value from the following Particulars Rs. Municipal Valuation 1,80,000 Fair rent 1,90,000 Standard Rent NA Actual Rent 1,40,000 Let out period 8 months Self-occupied period 4 months?.
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