I have received possession of property during the year. My ownership of the property was for less than a year. This property was not self-occupied. While computing the Gross Annual Value, should I take Expected Rent for the period of my ownership?

April 17, 2024 10:51

No. The expected rent is always calculated for the entire year and not for the period of ownership only.

Lets understand the concept of Expected Rent through an example

Mr. Rancho purchase a House.

Date of Acquisition - 01/09/2024

Expected Rent (calculated based on fair rent & municipal valuation) - Rs. 1,00,000/- p.m.

Solⁿ: - In this scenario, Expected Rent will be Rs. 12,00,000/- (1,00,000/- per month for 12 months) and not Rs. 7,00,000/- (1,00,000/- per month for 7 months).

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