What is annual value of the house property?
The annual value of house property has been defined as 'the amount for which the property may reasonably be expected to be let out for a year'.
However, if your property is let out for the whole or a part of the financial year, the gross annual value will be the amount received during the year as a result of the letting out of the house property. This shall also exclude the rent that the taxpayer is unable to realize in the financial year.
The following four factors have to be taken into consideration while determining the annual property:
a. Rent payable by the tenant.
b. Municipal valuation of the property.
c. Fair rental value (market value of a similar property in the same area) of the property.
d. Standard rent payable under the Rent Control Act.