Given is the information related to a house:

Municipal Value (M.V) Rs. 1,50,000

Fair Rent Rs. 1,80,000

Standard Rent Rs. 1,60,000

Actual Rent Rs. 20,000 pm

Municipal tax paid by owner is 20% of M.V. Unrealised rent Rs. 40,000 (conditions of rule 4 satisfied). What is the annual value of the house?

Question

Question

This question was previously asked in

UGC Paper 2: Commerce 22nd Dec 2018

Answer 1

A) Fair Value = Rs. 1,80,000

B) Municipal Value = Rs. 1,50,000

C) Higher Of A and B = Rs. 1,80,000

D) Standard Rent = Rs. 1,60,000

E) Expected Rent (Lower Of C and D) = Rs. 1,60,000

F) Actual Rent = Rs. 2,40,000 (20000 * 12 Months)

GROSS ANNUAL VALUE (Higher Of E and F) = Rs. 2,40,000

NET ANNUAL VALUE = Gross Annual Value (2,40,000) - Unrealised Rent (40,000) - Municipal Tax (30,000) = Rs. 1,70,000.