How do I compute the Gross Annual Value (GAV) of the property which was vacant throughout the year?
In such a case, the
GAV of the property shall be the annual expected rent from the property. The annual
expected rent of the property shall be computed in following manner, depending
on whether or not the property is governed by The Rent Control Act:
Does not fall under Rent Control Act
| Falls under Rent Control Act
|
Rent as per
municipal valuation (A)
| Rent as per
municipal valuation (A)
|
Fair amount of
rent (B)
| Fair amount of
rent (B)
|
Expected Rent
(C) = Higher of (A) or (B)
| Expected Rent
(C) = Higher of (A) or (B)
|
| Standard Rent
(D)
|
Gross Annual Value = Expected Rent
(C)
| Gross Annual Value = Higher of (C) or
(D)
|
Thus, in case of a
property not falling under Rent Control Act, the expected rent from a property
shall be the Gross Annual Value of the property.
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