Mr. Shushant is the owner of a house, the details of which are given belowthe gross annual value would be Municipal value ` 36,000 Actual rent `32,000 Fair Rent ` 36,000 Standard Rent ` 40,000

Question

Quizplus · Accepted Answer

The gross annual value of a house for tax purposes is determined by considering the municipal value, actual rent received, fair rent, and standard rent. The highest of the municipal value or fair rent, but not exceeding the standard rent, is considered if it is more than the actual rent received. Here, both the municipal value and fair rent are `36,000, which is less than the standard rent of `40,000 but more than the actual rent received (`32,000). Therefore, the gross annual value is `36,000.

Mr Shushant Is the Owner of a House, the Details