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Computation of

The document discusses the computation of the annual value of a house under Section 23(1) of the Property Act. The annual value is defined as the sum for which the property might reasonably be expected to be let from year to year, and is neither the actual rent received nor the municipal valuation of the property. In determining annual value, four factors are considered: the actual rent received, municipal value, fair rent of the property, and standard rent.

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Ayush Kesri
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24 views

Computation of

The document discusses the computation of the annual value of a house under Section 23(1) of the Property Act. The annual value is defined as the sum for which the property might reasonably be expected to be let from year to year, and is neither the actual rent received nor the municipal valuation of the property. In determining annual value, four factors are considered: the actual rent received, municipal value, fair rent of the property, and standard rent.

Uploaded by

Ayush Kesri
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Computation of 'Annual Value' of a Houes

Property [Section 23(1)]


As per section 23(1)(a) the Annual Value of any property shall be the sum for
which the property might reasonably be expected to be let from year to year. It
may neither be the actual rent derived nor the municipal valuation of the
property. It is something like notional rent which could have been derived, had
the property been let. In determining the annual value there are 4 factors which
are normally taken into consideration. These are:

i. Actual Rent Received or Receivable


ii. Municipal Value
iii. Fair Rent of the Property
iv. Standard Rent

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