What term does the Income-tax Act, 2025 use for the statutory rental value on which house-property income is based?
Question and options
What term does the Income-tax Act, 2025 use for the statutory rental value on which house-property income is based?
Standard Rent
Net Value
Municipal Value
Annual Value
Answer and explanation
Correct answer: D - Annual Value
Section 20 of the Income-tax Act, 2025 charges the annual value of buildings and appurtenant land, and section 21 determines it as the higher of the expected rent and the actual rent, less municipal taxes paid. Municipal value and standard rent are only inputs in fixing the expected rent.
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