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What is Expected Rent?

It s reasonable rent which is expected to be received from property

 

Expected rent =

Municipal valuation

or

Fair rent

Whichever is Higher

But it should not be more than Standard Rent

 

S.NOPARTICULARSAMTSTEPS
AMunicipal ValuexxSTEP 1
BFair Rentxx
CHigher of Municipal Value or Fair Rentxx
DStandard Rentxx
EExpected Rent (Lower of C or D)xx

 

 

 

Here

Municipal Value

It is the value determined by municipal authorities for the purpose of calculating tax

 

Fair Rent

It is the rent of similar property in market

 

Standard Rent

It is the rent fixed as per Rent Control Act

 

 

Q1

ParticularAmount
Municipal Value10000
Fair Rent20000
Standard Rent15000
Calculate Expected Rent 

--answer--

ParticularAmount
AMunicipal Value10000
BFair Rent20000
CHigher of Municipal Value or Fair Rent20000
DStandard Rent15000
EExpected Rent (Lower of C or D)15000

--endanswer--

Q2

 

Particulars

Amt

Municipal Value

10000

Fair Rent

20000

Standard Rent

30000

Calculate Expected Rent

 

--answer--

   

A

Municipal Value

10000

B

Fair Rent

20000

C

Higher of Municipal Value or Fair Rent

20000

D

Standard Rent

30000

E

Expected Rent (Lower of C or D)

20000

 

--endanswer--

 

Q3

  

Municipal Value

25000

Fair Rent

20000

Standard Rent

30000

Calculate Expected Rent

 

 

--answer--

A

Municipal Value

25000

B

Fair Rent

20000

C

Higher of Municipal Value or Fair Rent

25000

D

Standard Rent

30000

E

Expected Rent (Lower of C or D)

25000

--endanswer--

Q4

 

  

Municipal Value

25000

Fair Rent

20000

Standard Rent

N/A

Calculate Expected Rent

 

--answer--

   

A

Municipal Value

25000

B

Fair Rent

20000

C

Higher of Municipal Value or Fair Rent

25000

D

Standard Rent

N/A

E

Expected Rent 

25000

--endanswer--

  1. Income Tax
  2. Income From House Property
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com.
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