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Gross Annual Value Calculation Guide

The document outlines the calculation of Gross Annual Value (GAV) for various properties, detailing fair rent, municipal rent, standard rent, and actual rent for multiple houses. It also includes computations for income from house property, deductions, and taxable income for different individuals. The conclusion highlights the classification of properties as self-occupied or deemed let out based on income calculations.
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0% found this document useful (0 votes)
25 views12 pages

Gross Annual Value Calculation Guide

The document outlines the calculation of Gross Annual Value (GAV) for various properties, detailing fair rent, municipal rent, standard rent, and actual rent for multiple houses. It also includes computations for income from house property, deductions, and taxable income for different individuals. The conclusion highlights the classification of properties as self-occupied or deemed let out based on income calculations.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Calculation of Gross Annual Value Calculation of Gross Annual Value

Sr. No Particulars ₹ Sr. No


1 Fair Rent 150000 1
2 Municipal Rent 180000 2
3 Standard Rent 170000 a
4 actual Rent 185000 3
5 Gross Annual Value 185000
b
4

5
n of Gross Annual Value

Particulars ₹
Fair Rent 150000
Municipal Rent 180000
Higher of AVOBE 180000
Satndard rent 170000
Expected Rent
Lower of a and 3 170000
Actual Rent 185000
Gross Annual Value
Higher of 4 and 5 185000
QUESTION 2

Computation og Gav for each house in case of Jigisha

House 1 House 2 House 3 House 4 House 5


Sr. No Paticulars (₹) (₹) (₹) (₹) (₹)
1 Municipal Value 80000 55000 65000 24000 80000
2 fair Rent 90000 60000 65000 25000 75000
3 Standard Rent 75000 58000 78000
4 Actual Rent 72000 72000 60000 30000 72000
Gros Annual Value 90000 72000 60000 30000 78000
QUESTION 3

Computation og Gav for each house in case of JAYSHREE

House 1 House 2 House 3 House 4 House 5


Sr. No Paticulars (₹) (₹) (₹) (₹) (₹)
1 Municipal Value 60000 55000 45000 34000 86000
2 fair Rent 70000 70000 45000 35000 79000
3 Standard Rent 65000 68000 88000
4 Actual Rent 52000 62000 70000 40000 82000
Gros Annual Value 70000 65000 70000 40000 86000
Calculation of Income from House Property

Sr. No Particulars ₹ ₹
1 Gross Annual Value
2 Less: Municipal Tax
3 Net Annual Value 0
4 Less: Deductions u/s 24
a. Standard Deduction @30% u/s 24(a) 0
b. Interest on borrowed capital u/s 24(b) 0
5 Taxable income from House Property 0
note: every time calculate in SD (NAV)
Calculation of Income from House Property

Sr. No Particulars ₹ ₹
1 Gross Annual Value 121000
2 Less: Municipal Tax 13000
3 Net Annual Value 108000
4 Less: Deductions u/s 24
a. Standard Deduction @30% u/s 24(a) 32400
b. Interest on borrowed capital u/s 24(b) 40000 72400
5 Taxable income from House Property 35600

Nore GAV
Sr. No Particulars ₹
1 Fair rent 110000
municipal Value 130000
Standard Rent 120000
Actual Rent 132000
GAV 132000
leSS: Unrealized rent 11000
Taxable GAV 121000
`
Calculation of Income from House Property FOR mr Sheety
House 1
Sr. No Particulars ₹ ₹
1 Gross Annual Value -18000
2 Less: Municipal Tax 20000
3 Net Annual Value -38000
4 Less: Deductions u/s 24
a. Standard Deduction @30% u/s 24(a) -11400
b. Interest on borrowed capital u/s 24(b) 40000 28600
5 Taxable income from House Property -66600

Nore GAV
Sr. No Particulars ₹
1 Fair rent 275000
municipal Value 200000
Standard Rent 250000
Actual Rent 0
GAV
leSS: Unrealized rent 18000
Taxable GAV -18000
`
Calculation of Income from House Property
House 1
Sr. No Particulars ₹
1 Gross Annual Value 250000
2 Less: Municipal Tax 26000
3 Net Annual Value
4 Less: Deductions u/s 24
a. Standard Deduction @30% u/s 24(a) 67200
b. Interest on borrowed capital u/s 24(b) 0
5 Taxable income from House Property

Nore GAV
Sr. No Particulars ₹
1 Fair rent 275000
municipal Value 200000
Standard Rent 250000
Actual Rent 0
GAV 250000
leSS: Unrealized rent 0
Taxable GAV 250000
`

House 2
Sr. No Particulars ₹
1 Gross Annual Value 670000
2 Less: Municipal Tax 4320
3 Net Annual Value
4 Less: Deductions u/s 24
a. Standard Deduction @30% u/s 24(a) 199704
b. Interest on borrowed capital u/s 24(b) 145000
5 Taxable income from House Property

Nore GAV
Sr. No Particulars ₹
1 Fair rent 675000
municipal Value 54000
Standard Rent 670000
Actual Rent 0
GAV 670000
leSS: Unrealized rent 0
Taxable GAV 670000
House 3
Sr. No Particulars ₹
1 Gross Annual Value 575000
2 Less: Municipal Tax 37100
3 Net Annual Value
4 Less: Deductions u/s 24
a. Standard Deduction @30% u/s 24(a) 161370
b. Interest on borrowed capital u/s 24(b) 375000
5 Taxable income from House Property

Nore GAV
Sr. No Particulars ₹
1 Fair rent 580000
municipal Value 530000
Standard Rent 575000
Actual Rent 0
GAV 575000
leSS: Unrealized rent 0
Taxable GAV 575000

Calclation of Income For House Property

Sr. No Particulars Default Tax Regieme


1 Income from House 1 (Self occupied) 0
2 Income from House 2 (Self occupied) 0
3 Income from House 3 (Deemed Letout) 1530
Income From House Property 1530

Conclusion :
1) House 3 is considered as deemed to be let out as the income is lowest
2) House 1 and 2 shall be considered as self occupied properties.

MU Notes :
1) The above calculations have been made assuming that all of the above properties are deemed to be let out
2) Under default tax regime, the income from House 1 & 2 sall be nil as they are self occupies
3) Under optional tax regieme , the income from House 1 shall be nil when self occupis because there is no int
4) Under the optional tax regieme, the income from House 2 shall be ₹(30000) because the limit of deduction

224000

67200
156800

250000

665680

344704
320976

537900

536370
1530

Optional Tac Regime


0
-30000
1530
-28470

properties are deemed to be let out


y are self occupies
self occupis because there is no interest on borrowings.
000) because the limit of deduction available when borrowed capital is used for repairs or renewals is ₹30000.

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