Income From House Property (IHP)

Practical Income Tax
Important Points of Different Incomes

#### 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.NO PARTICULARS AMT STEPS A Municipal Value xx STEP 1 B Fair Rent xx C Higher of Municipal Value or Fair Rent xx D Standard Rent xx E Expected 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

 Particular Amount Municipal Value 10000 Fair Rent 20000 Standard Rent 15000 Calculate Expected Rent

 Particular Amount A Municipal Value 10000 B Fair Rent 20000 C Higher of Municipal Value or Fair Rent 20000 D Standard Rent 15000 E Expected Rent (Lower of C or D) 15000

Q2

 Particulars Amt Municipal Value 10000 Fair Rent 20000 Standard Rent 30000 Calculate Expected Rent

Q3

 Municipal Value 25000 Fair Rent 20000 Standard Rent 30000 Calculate Expected Rent

 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

Q4

 Municipal Value 25000 Fair Rent 20000 Standard Rent N/A Calculate Expected Rent

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