CA InterIncome from house property - Gross Annual Value under Section 23(1)
How do I compute Gross Annual Value of a let-out house with vacancy and unrealised rent?
BrunoAI answer
Gross Annual Value (GAV) = Rs. 60,000. Steps under Sec 23(1): 1. Expected Rent (ER) = Rs. 82,000 2. Actual rent for the let period (1.4.25 to 31.1.26) = 7,000 x 10 = 70,000 Less unrealised rent = 10,000 Actual rent received/receivable = 60,000 3. Check whether the fall is due to vacancy: rent for the full year would be 7,000 x 12 = 84,000, which is more than ER of 82,000. So actual rent is below ER only because of vacancy. 4. In that case, GAV = actual rent received/receivable = Rs. 60,000. Note: unrealised rent is deducted only if the Rule 4 conditions are met. Assume they are unless the question says otherwise.
Read full answer →
1 answer 9 Nov 2026