Assume that the municipal value of a house property is Rs. 1,05,000 fair rent is Rs. 1,07,000, the…
The gross annual value is Rs. 1,07,000. Expected rent is the higher of municipal value and fair rent, capped by standard rent: min[max(1,05,000, 1,07,000), 1,35,000] =…
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Assume that the municipal value of a house property is Rs. 1,05,000 fair rent is Rs. 1,07,000, the standard rent is Rs. 1,35,000 and the actual rent is Rs. 97,000. The gross annual value of the house property will be
Answer and explanation
Correct answer A
The gross annual value is Rs. 1,07,000. Expected rent is the higher of municipal value and fair rent, capped by standard rent: min[max(1,05,000, 1,07,000), 1,35,000] = 1,07,000. This exceeds the actual rent of Rs. 97,000 and therefore determines gross annual value under the ordinary annual-value rule.
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Telangana SET (TG SET)