Question

Given is the information related to a house
Municipal value (MV). Rs.150000
Fair rent. Rs.180000
Standard rent. Rs.160000
Actual rent. Rs.20000
Municipal tax paid by owner is 20% of MV. Unrealised rent 40000 (conditions of rule 4 satisfied). What is the annual value of the house? ​

Answer 1

The annual value of the house is 1,70,000 Rupees.

Step-by-Step Explanation:

• The annual value of the house(Net value) is calculated as

Annual value of the house = Gross Annual value(GAV) - Municipal taxes

• GAV is calculated based on the reasonable rent from year to year.

• From the given details,

Gross annual value = 20000*12=240000 - 40000(not received)

                                =2,00,000

Municipal taxes (30% of municipal value) = 30000

Net annual value = GAV- Municipal taxes

                            = 2,00,000 - 30,000

                            = 1,70,000.

Therefore, the annual value of the house is 1,70,000 Rupees.