So, as I was explaining to you, the recording stopped in
the middle, let me summarize once again for you that what
were we doing?
What were we doing? We were taking out gross annual value
of the property so that we come to NIB, from that we will
give some deduction so that the income of the house
property is made.
Basically, we have to find out whether this whole chapter
is there or not.
We are learning the calculation of this only that what
should come in the house property and what should not come.
So, first of all, we were on step no.
1 that how do we calculate this?
So, whose calculation will this be?
It will be the calculation of the house that you have
rented.
So, I explained you case no.
1 that if you have rented a house for a whole year, then
how will you see its income and how will you see its GED?
So, first of all, let's talk according to common sense.
First of all, on which thing should the tax be imposed?
Brother, it should be imposed on the rent that you are
taking.
You will tell this only, right?
The rent that you are taking, the tax should be imposed on
that only.
So, you have told that my rent is actual rent.
How much is that? Rs. 10,000.
And how will I compare it?
I will write here Rs. 10,000.
Whom will I compare this with?
With the expected rent.
Okay, sir?
Expected.
What is my expectation?
What should I get?
You will get to know what the actual rent is.
How will you get to know the expected?
In two ways.
By comparing both.
Who? First of all, fair.
What is its fair value?
Fair value means market value.
What is the rate of that thing in the market?
I am telling you.
I am telling you that the market value is Rs. 15,000.
Okay? What is the comparison?
The comparison will be municipal value.
Municipal value is the rate of the house in this area.
In that rate, if your house falls in that area, then you
have to take this rate.
The government has made its list.
Okay? According to that, you have to compare these two.
Suppose this comes out to be Rs. 11,000.
So what will the government think?
Out of the two, which one should I show?
You have to show the government the maximum income so that
they take the maximum tax.
So whom will they show?
They will show Rs. 15,000.
So what is your Rs.
It is a fair value.
But what did you get?
Expected rent.
Rs. 15,000.
Who were we comparing it to?
We were comparing it to the actual rate.
How much was that? Rs.
So what do you have to take out of the two?
The one that is more.
If it is more, then your income will be more.
If your income is more, then your tax collection will be
more.
What do you have to take out of the two?
Rs. 15,000.
It was a simple concept.
Okay? We are taking out gross annual value.
How do you have to take out the house that is rising all
year round?
First, the actual.
Whom do you have to compare the actual with?
With the expected.
Once you have fixed the actual, move aside.
Let's come to the expected.
What do you have to do in the expected?
There are two things.
First, the market value of rent.
How much rent is there?
Second, the government says, how much rent should there be
on the edge of the municipal?
Take the higher one of these two.
What came out of that?
The expected.
Compared to the actual one.
What came out of that?
The higher one of the two, became our rent.
It became our rental.
G.A.V.
Gross Annual Value.
But friends, take note, that sometimes the government
decides that the rent of this area should not be more than
this amount.
Because sometimes it happens that the rent is 5 lakhs per
month or 7 lakhs per month.
So how will a normal person do that?
So the government decides that through the Rent Control
Act, the government has also decided that the rent of some
areas should not be more than this amount.
That is called
Standard Rent.
So in any way, if you take out your rent, you have to
compare it with the standard rent.
You know that here you took out 15,000 rupees.
But the government fixed the standard rent to 6,000 rupees.
So what will you do in that case?
The government says, we don't expect you to take more than
6,000.
So the maximum expected amount is 6,000 rupees.
Standard rent is that you cannot get more than this.
The government has decided that whatever you take, we will
not give you more than this.
So you will have to take the same figure.
Compare it.
When you solve the questions,
I will do everything.
I have just told you the basics.
Revise it carefully.
If you don't understand, watch the lecture again.
Thank you.