Question

Calculate net value of a house from the following:
*Actual rent received Rs.6,000 p.m.
* Fair rental value Rs.66,000.
*Municipal rental value Rs.66,000.
*Standard rent Rs.69,000.
*Municipal tax paid 12% of municipal rental value.​

Answer 1

Answer:

Net asset value(NAV) = ₹64080

Explanation:

A.) Fair rent : 66000

B.) Municipal value :66000

C.) Whichever is higher : 66000

D.) Standard rent :69000

Whichever is lower :66000

From C and D

E.) Actual rent :72000

(6000×12month)

GAV :72000

D or E whichever is

Higher

Now GAV : 72000

(-) Municipal tax paid : (7920)

(12%×66000)

NAV : 64080