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GAV means Gross Annual Value
How to calculate Gross Annual Value
It is
Expected Rent
Or
Actual Rent
Whichever is higher
EXCEPTION
However if property was vacant and because of vacancy
Actual rent was less than Expected Rent
then GAV = Actual Rent
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CALCULATE GAV IN FOLLOWING CASES
Q1
|
Expected Rent |
10000 |
pm |
|
Actual Rent |
12000 |
pm |
|
Property was on rent through out the year |
|
|
|
Annual Expected Rent |
120000 |
|
Annual Actual Rent |
144000 |
|
GAV |
144000 |
|
(Higher of Expected or Actual Rent) |
|
Q2
|
Expected Rent |
10000 |
pm |
|
|
Actual Rent |
12000 |
pm for 11 months |
|
|
Property was self occupied for one month and on Rent for 11 Months |
|||
|
Annual Expected Rent |
120000 |
(10000*12) |
|
Annual Actual Rent |
132000 |
(12000*11) |
|
GAV |
132000 |
|
|
(Higher of Expected or Actual Rent) |
|
|
Q3
|
Expected Rent |
10000 |
pm |
|
Actual Rent |
12000 |
pm for 8 months |
|
Property was self occupied for 4 month and Rented for 8 months |
||
|
Annual Expected Rent |
120000 |
(10000*12) |
|
Annual Actual Rent |
96000 |
(12000*8) |
|
GAV |
120000 |
|
|
(Higher of Expected or Actual Rent) |
|
|
Q4
|
Expected Rent |
10000 |
pm |
|
Actual Rent |
12000 |
pm for 8 months |
|
Property was Vacant for 4 month |
|
|
|
Annual Expected Rent |
120000 |
(10000*12) |
|
Annual Actual Rent |
96000 |
(12000*8) |
|
GAV |
96000 |
|
|
(GAV is Actual Rent as actual rent is less than expected rent because of vacancy) |
|
|
COMPUTATION FORMAT STEP 1 AND STEP 2 COMBINED
| 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 | |
| F | Actual Rent | xx | STEP 2 |
| G | GAV | xx | |
| (Normally Higher of Expected or Actual Rent) |
Q5
|
Municipal Value |
200000 |
P.A |
|
Fair Rent |
280000 |
P.A |
|
Standard Rent |
240000 |
P.A |
|
Actual Rent |
300000 |
P.A |
|
(25000 PM*12) |
|
|
|
Calculate GAV |
|
|
|
A |
Municipal Value |
200000 |
|
B |
Fair Rent |
280000 |
|
C |
Higher of Municipal Value or Fair Rent |
280000 |
|
D |
Standard Rent |
240000 |
|
E |
Expected Rent (Lower of C or D) |
240000 |
|
F |
Actual Rent |
300000 |
|
G |
GAV |
300000 |
|
|
(Higher of Expected or Actual Rent) |
|
Q6
|
Municipal Value |
200000 |
P.A |
|
Fair Rent |
280000 |
P.A |
|
Standard Rent |
240000 |
P.A |
|
Actual Rent |
225000 |
P.A |
|
(25000 PM*9,Bal 3 month vacant) |
|
|
|
Calculate GAV |
|
|
|
A |
Municipal Value |
200000 |
|
B |
Fair Rent |
280000 |
|
C |
Higher of Municipal Value or Fair Rent |
280000 |
|
D |
Standard Rent |
240000 |
|
E |
Expected Rent (Lower of C or D) |
240000 |
|
F |
Actual Rent |
225000 |
|
G |
GAV |
225000 |
|
|
(GAV is Actual Rent as actual rent is less than expected rent because of vacancy) |
|
