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What is Expected Rent?
It s reasonable rent which is expected to be received from property
Expected rent =
Municipal valuation
or
Fair rent
Whichever is Higher
But it should not be more than Standard Rent
| S.NO | PARTICULARS | AMT | STEPS |
| A | Municipal Value | xx | STEP 1 |
| B | Fair Rent | xx | |
| C | Higher of Municipal Value or Fair Rent | xx | |
| D | Standard Rent | xx | |
| E | Expected Rent (Lower of C or D) | xx |
Here
Municipal Value
It is the value determined by municipal authorities for the purpose of calculating tax
Fair Rent
It is the rent of similar property in market
Standard Rent
It is the rent fixed as per Rent Control Act
Q1
| Particular | Amount |
| Municipal Value | 10000 |
| Fair Rent | 20000 |
| Standard Rent | 15000 |
| Calculate Expected Rent |
--answer--
| Particular | Amount | |
| A | Municipal Value | 10000 |
| B | Fair Rent | 20000 |
| C | Higher of Municipal Value or Fair Rent | 20000 |
| D | Standard Rent | 15000 |
| E | Expected Rent (Lower of C or D) | 15000 |
Q2
|
Particulars |
Amt |
|
Municipal Value |
10000 |
|
Fair Rent |
20000 |
|
Standard Rent |
30000 |
|
Calculate Expected Rent |
|
|
A |
Municipal Value |
10000 |
|
B |
Fair Rent |
20000 |
|
C |
Higher of Municipal Value or Fair Rent |
20000 |
|
D |
Standard Rent |
30000 |
|
E |
Expected Rent (Lower of C or D) |
20000
|
Q3
|
Municipal Value |
25000 |
|
Fair Rent |
20000 |
|
Standard Rent |
30000 |
|
Calculate Expected Rent |
|
--answer--
|
A |
Municipal Value |
25000 |
|
B |
Fair Rent |
20000 |
|
C |
Higher of Municipal Value or Fair Rent |
25000 |
|
D |
Standard Rent |
30000 |
|
E |
Expected Rent (Lower of C or D) |
25000 |
Q4
|
Municipal Value |
25000 |
|
Fair Rent |
20000 |
|
Standard Rent |
N/A |
|
Calculate Expected Rent |
|
|
A |
Municipal Value |
25000 |
|
B |
Fair Rent |
20000 |
|
C |
Higher of Municipal Value or Fair Rent |
25000 |
|
D |
Standard Rent |
N/A |
|
E |
Expected Rent |
25000 |
