Can anyone explain me the Vacancy concept of House property?

Chippy · 17 Jun 2026

It means: when a house is not occupied for some time (even though it is available for use), the owner may lose rental income. The law allows this vacancy period to be considered while calculating the annual value of the property. Suppose a house can earn ₹10,000 per month rent. Expected rent for 12 months = ₹1,20,000. But it was vacant for 2 months → rent received only ₹1,00,000. Annual value for tax = ₹1,00,000 (not ₹1,20,000).

Kaavya · 17 Jun 2026

Vacany means it is neither self occupied nor let out . Suppose the property is let out for 9 months and for the remaining 3 months it is vacant(means no rent) then check if expected rent is <= (actual rent + vacancy rent) , if yes then take GAV = Actual rent. If not then GAV = Expected rent .