.

, ncome

such tax are caijed m~nicipal tax Or house' fax ()~

shall be allowed for the tax so paid from GAV but if tax q:
-
If tax has been paid by the tenant,._ in that case tax shall not
Exampk . --:--- __ -_~~_.._w
Duri~g the previous year 2023-24 municipality has levied tdea··,20·()6
In this case, amount allowed to be deducted is , 15,000. In the nQt ...&
t45,000 but the asses~ee has paid t 55,000 which includes ,s,ooo for the
y•·A,f'•

i.if
subsequent year. In this case, amount allowed be deducted in previous yeir
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Question 3: Write a note on computation of income of house lying vacant

Answer: House lying vacant for some period Section 23(1)(c)
lOlft for
· ·: :- .• • •. :.• ·~ ·, •.
If the house is partly let out and partly vacant, in such. cases expected rent shall be computed
but while computing rent received /receivable, rent for the period for which the
excluded and fGAV shall be higher of expected rent and rent •received/receiva e
received/receivable 1~ l~an the expected rent owing to vacancy, in that case
shall be gross annual value. e.g. lf expected rent is t20,000 p.m. and rent received/receivable u.~otN
p.m. and there is vacancy for 5 months, in this case GAV shall be the expected rent because even
was no vacancy, still rent received/receivable was less than expected rent. · · - • -• '.
If in this case rent received/receivable is ?25,000 p.m. and it is vacant for 5 months, gross annual value.
be the rent received/receivable because if there was no vac~cy, rent R/R would have been higher
expected rent accordingly in the given case, R/R is lower than expected rent owing to vac3:11cy.
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Illustration 4: Com oss annual value in the followin cases for the assessment ear 2024-25:
•Particulars Situation 1 Situation 2 Situation 3 Situation 4
Fair Rent .m. 9,000 13,000 16,000 12,000
Munici al Valuation .m. 10,000 9000 18,000 9,000
Standard Rent .m. 12,000 11,000 16,000 • • 7,000
Rent received/ receivable 7,000 11,500 16,000 ·,' 20,000 I

.m. . ..
Vacanc I month I month 2 months 2 month
Solution:
Situation 1
Computation of Gross Annual Value
(a) Fair Rent _•
(9,000 X 12) '.
, I

(b) Municipal Valuation

(10,000 X 12) ' ,

(c) Higher of (a) or (b)

(d) Standard Rent
(12,000 X 12)
(e) Expected Rent {Lower of (c) or (d)}
(f) Rent Received/Receivable , .-
(7,000 X 11) _ . .-' .. :
If there was no vacancy, in that case rent received/receivable would have been ~7000 x 12 = ~84,000 •:
and it is still less than expected rent, therefore GAV shall be expected rent.
Gross Annual Value
. Situatjon 2
1
Computation of Gross Annual Value
(a) Fair Rent
(13,000 X 12)
(b) Municipal Valuation .' .
1,08 _
(9,000 X 12)
. . ;
.