How to Compute

Income Tax
Income From House Property

## GAV means Gross Annual Value

### How to calculate Gross Annual Value

It is

Expected Rent

Or

Actual Rent

Whichever is higher

EXCEPTION

However if property was vacant and because of vacancy

Actual rent was less than Expected Rent

then GAV  =  Actual Rent

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CALCULATE GAV IN FOLLOWING CASES

Q1

 Expected Rent 10000 pm Actual Rent 12000 pm Property was on rent through out the year

Q2

 Expected Rent 10000 pm Actual Rent 12000 pm for 11 months Property was self occupied for one month and on Rent for 11 Months

Q3

 Expected Rent 10000 pm Actual Rent 12000 pm for 8 months Property was self occupied for 4 month and Rented for 8 months

Q4

 Expected Rent 10000 pm Actual Rent 12000 pm for 8 months Property was Vacant for 4 month

#### COMPUTATION FORMAT STEP 1 AND STEP 2 COMBINED

 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 F Actual Rent xx STEP 2 G GAV xx (Normally Higher of Expected or Actual Rent)

Q5

 Municipal Value 200000 P.A Fair Rent 280000 P.A Standard Rent 240000 P.A Actual Rent 300000 P.A (25000 PM*12) Calculate GAV

Q6

 Municipal Value 200000 P.A Fair Rent 280000 P.A Standard Rent 240000 P.A Actual Rent 225000 P.A (25000 PM*9,Bal 3 month vacant) Calculate GAV