Skip to content

CA Intermediate · Taxation · Income from House Property

Mr. Kapoor owns a house in Pune which was let out for the whole of tax year 2026-27. Municipal value is Rs 2,40,000, fair rent Rs 2,60,000, standard rent under the Rent Control Act Rs 2,50,000, and actual rent received Rs 2,70,000. There is no vacancy. What is the Gross Annual Value of the property?

The Gross Annual Value is Rs 2,70,000. Expected rent works out to Rs 2,50,000 after capping the higher of municipal and fair value at standard rent, and because the actual rent received is higher and there was no vacancy, the actual rent becomes the GAV.

  1. ARs 2,40,000
  2. BRs 2,50,000
  3. CRs 2,60,000
  4. DRs 2,70,000Correct

Explanation

Expected rent is the higher of municipal value (2,40,000) and fair rent (2,60,000), i.e. 2,60,000, but capped at standard rent 2,50,000. So expected rent = 2,50,000. Since actual rent 2,70,000 exceeds expected rent and there is no vacancy, GAV = 2,70,000. Choosing 2,50,000 wrongly stops at expected rent.

Did you get it right without looking?

One question tells you little. A timed set on Income from House Property shows your real accuracy, how long you take and where you lose marks.

Practise Income from House PropertyFree diagnostic mock

More Income from House Property questions