Where rent-control law applies to a property, which figure caps the sum for which the property might reasonably be expected to let?
Question and options
Where rent-control law applies to a property, which figure caps the sum for which the property might reasonably be expected to let?
Municipal value
Actual rent
Fair rent
Standard rent
Answer and explanation
Correct answer: D - Standard rent
Under rent-control law, the expected rent under section 21(1)(a) of the Income-tax Act, 2025 cannot exceed the standard rent, even if fair rent or municipal value is higher. Actual rent is a separate measure; annual value is the higher of the expected rent and the actual rent.
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