TAX INCOME FROM HOUSE PROPERTY STANDARD RENT ACTUAL

TAX INCOME FROM HOUSE PROPERTY: Ø STANDARD RENT Ø ACTUAL RENT Ø FAIR RENT Ø MUNICIPAL VALUE Ø EXPECTED RENT Ø GROSS ANNUAL VALUE Ø COMPUTATION OF ANNUAL VALUE {FOR LET OUT HOUSR PROPERTY}

Standard Rent: Standard rent is the rentwhich the land lord is expected to receive from the tenant. Standard rent is only provided if the property is under rent control legislation. Actual Rent: Actual rent means the rent for which the property is let out during the year. While computing actual rent, rent pertaining to vacancy period is not to be deducted. Fair Rent: Fair rent is the reasonable rent for a private property fixed and registered By rent officer. Fair rent is fixed based on the size, condition, and usefulness of the property. In the fair rent, the scarcity of rented property is not taken into account and therefore fair rent is usually lower than the market rent.

Municipal Value: Municipal value is the value determined by local authorities by making a periodical survey of all buildings in their jurisdication. Such valuation helps in charging municipal tax. The value assigned to property by a municipality for the purpose of tax assessment. Expected Rent: Expected rent or Deemed rent is the rent which the owner is expected to receive, calculated on national basis from the higher of the municipal value or fair rental value subject to maximum of the standard rent, in case property is covered under the rent control act.

Gross Annual Value: The Gross Annual Value also calledjust the “Annual value”, of a property which is used in calculating the tax or rent which should be applied to the property. Format For Computation Of Annual Value{for the let out Previous year Annual year Particularsproperty} house Gross annual value Particulars Less: Municipal taxes Gross annual value Net annual value Less: Municipal taxes Less: Standard deduction Less: interest borrowed Net annualonvalue capital Less: Standard deduction Less: Interest on borrowed capital Income from self occupied NIL property Income from self occupied property _____ Previous Year NIL Annual NIL Year NIL NIL NIL _____ NIL xxx ____ xxx xxx

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