Where no rent-control law applies, how is the sum for which a house might reasonably be expected to let ordinarily estimated?
Question and options
Where no rent-control law applies, how is the sum for which a house might reasonably be expected to let ordinarily estimated?
The higher of municipal value and fair rent
The average of municipal value and fair rent
The lower of municipal value and fair rent
The municipal value, ignoring fair rent
Answer and explanation
In fixing the expected rent under section 21(1)(a) of the Income-tax Act, 2025, the settled practice is to take the higher of the municipal value and the fair rent, subject to the standard rent where rent-control law applies. The lower or the average would understate what the property could fetch.
Practice for these exams
-
All India Bar Examination (AIBE)
Subject revision
See pack details on LawMint.net -
IIT Kharagpur LL.M. Entrance
Subject revision
See pack details on LawMint.net -
CLAT PG
Subject revision for a passage-based exam
-
AILET PG
Subject revision
Related exam syllabi
More solved explanations in Income tax - basic concepts, residence & heads of income
- By virtue of section 70 of the Income-tax Act, 2025, which of the following is NOT treated as a transfer chargeable to capital gains under section 67?
- Which transfer pricing method allocates the combined profits from a controlled transaction among the associated enterprises according to their relative…
- How is an ordinary uncommuted pension paid monthly by a former employer generally classified under the Income-tax Act, 2025?
- Under the Income-tax Act, 2025, on amalgamation of a company
- For tax year 2026-27, what limit does section 126(3) of the Income-tax Act, 2025 place on the deduction for payments for preventive health check-ups, for an…