13)M has a residential property, details of which are given below
Particulars Amount Municipal valuation 100000 Fair rent p.m 15000 Standard rent p.m 9600 Municipal taxes paid @ 20% of municipal valuation Interest on loan for purchase of this house 20000 Rent receivable p.m 10000
The house property is vacant by the tenant on the last day of October 2009, it could then be let out only from 1st of January 2010 at 14000 p.m rent for march 2010 could not be realized. Compute the income from house property for the assessment year 2010-11 SOLUTION: PARTICULARS Amt Amt Amt A) GROSS ANNUAL VALUE (GAV) 1.1 Reasonable Lettable Value (RLV) 180000 1)fair rent (15000 x12 ) 100000 2)municipal value 180000 3)higher of 1) and 2) 115200 4)standard rent (10000x12) 115200 Lower of 3) and 4) 1.2 Actual Rent Receivable(AR) 10000x7 70000 14000x3
42000 112000 Less: Unrealised Rent for March 14000 98000 GAV= AR, as it is less than RLV due to vacancy 98000
B) less: municipal taxes paid by owner 20000 (20% x100000) C)Net Annaul Value(NAV) 78000 D)Less: Deduction U/S.24 1)standard deduction(30% of nav) 23400 2)interest 20000 43400 E)INCOME FROM LET OUT PROPERTY 34600