Hello friends, how are you all?
How are you all?
Friends, I am C.S.
Shreya Gupta and we were discussing about Gross Annual
Value Calculation
Friends, first of all, I would like to thank you that in
the last lecture, you tried to understand such complex
things and put your efforts
Friends, because you put your efforts
So, it is my duty to explain those things to you in 30
seconds
So, friends, we were understanding the calculation of Gross
Annual Value of the house which you have rented for the
whole year
In that, first of all, what are we doing?
Have we taken out the house property income?
Say yes
I can't hear you
Say yes
Have we taken out the house property income?
So, for that, what do we need?
Gross Annual Value
So, in the calculation of Gross Annual Value, what comes
first?
Actual Rent
The one which is coming in the Rent Agreement
The one which is coming in the Bank Statement
That will be Actual Rent
Have we taken Actual Rent?
Now, I will do a comparison of that
With whom?
With Expected Rent
Now, what was this Expected Rent?
What was the Expected Rent?
The expectation of the government that it will take this
much rent
There were two things in that, remember
What was the first one?
Tell me, I can't hear you
Yes, Fair Rental Value
What was the Fair Rental Value?
The amount which will be available in the market
The amount of rent which will be available in the market
I will get that much rent
What do I call that?
Fair Rental Value
With whom should this be compared, friends?
Municipal Value of that property
What was this Municipal Value, sir?
Sir, the tax which you pay on the property every year
That tax goes on some amount, on some figure
That figure, the government tells that
Brother, this area
This house, the people who come in this area
They have this much value
That is called Municipal Value
You will get this value from the website of the municipality
So, you had compared the Fair Rental Value with the
Municipal Value
The amount which was more than both
That was your Expected Rent
But before going, I had told you one thing
That Expected Rent is never more than the Standard Rent
What was the Standard Rent?
I had told you that the government fixes it
That the rent of this area can't be more than this
No matter what you do
It can't be more than this figure
So, when you are doing this calculation
So, pay attention to this thing
That that figure, if it is given to you in question
So, see that it doesn't go more than the Standard Rent
Never What? Expected Rent
Expected Rent will never go more than the Standard Rent
Because when the government puts a limit, then who are we?
The government said, brother, it can't go more than this
So, brother, okay, it can't go more than this
So, take it
So, did you get the Expected Rent?
After doing this calculation
You had compared it with the actual value
The one which was more than both
That was your Gross Annual Value
Friends, shall I tell you one thing?
In explaining this topic
The teachers also get confused
And the children also don't understand
I feel that you might have understood this
Because I have explained this thing 3-4 times
I had explained this thing to you with a lot of hard work
I had explained this thing to you with a lot of examples
Friends, if you have understood this
Then clap on your shoulders
Because as I had said in a previous lecture
That the world doesn't clap
The world is always waiting for you to fall
Today is the chance, clap for yourself
And pat your back
So, friends, I will teach you the theory of Gross Annual
Value
I will make you relax
Come, open your notes
If you want to see it from here
You can see it here
Ignore the diagram
It was nothing
It was the same diagram
It was the same thing which I was telling you
You will understand the meaning of each word
Now, we are going on GAB
So, let's understand this
How did you do the determination of the annual value of the
property?
Where the property is let out for the whole year
You have kept the property on rent for the whole year
So, how did you do it?
Higher off, what will be GAB?
Higher off expected or actual
Whichever is more
Now, I have explained the calculation of expected
As I had told you
You can read this calculation
I am telling you
You will not understand
It is going on in the same way
As I had made it compared
You will understand it in the same way
Ok, he has explained it
Standard rent
What is standard rent?
It will never go more than standard rent
He has told you the municipal value
Municipal tax is added to it
I am going to talk about municipal tax in a while
Just give me 5 minutes
I want you to see this illustration
How did we do it?
If anyone still has some confusion
See this illustration
You will understand it
Ok I am also trying to solve it with you
I am also trying to solve it with you
I will see how we will do it
See friends
The question says
Jayshree owns 5 houses in India
And what are all of them?
Does she live in it?
Is she let out?
All of them
She has rented all of them
Assume she has rented all of them
All of them
Assume she has rented all of them
And she has let out all of it
Tell me
Once she has let out the actual rent
What do we have to do first?
Expected rent
Versus Actual rent
I will request our director to focus on this side as well
If he can focus on this side as well
Show the camera to the director
If he can focus on this side
Very good
So We do the calculation of expected and versus actual rent
We do it one by one
What did I tell you? What is expected rent?
What is the rate of fair value in the market?
How to compare it with municipal value?
What is the rate of municipal value?
What is the rate of fair rent?
Let's start with house number 1
Fair rent
I told you to compare both
Which one is more?
The government will want
It will try to make your income as much as possible
How will the income be made as much as possible?
When you show the rent as much as possible
What will be more according to the government? 80 or 90?
The government will take 90
So expected rent
But I also said that expected rent
Check in the question
That it should not be more than the standard rent
Did you see that?
Was there anything in this?
There is nothing in this
So our fair rent will become expected
How much? 90?
How will I compare it with?
With actual
How much is actual in this case? 72? So 72
I compared it with 72
Simple thing
What will be more than both?
You told me that I received 72,000 per year
But the government says
Wait You are saying 72,000
But in your area
The market rent is 90,000
At what rate?
You have put your property on rent
You are saying 72,000
But the market rent is 90,000
Are you lying?
I said no
I had an acquaintance
That's why I put less money
He said what is the meaning of less money?
According to our government record
At least 80,000 is made
Take this much
If If a horse befriends grass
What will it eat?
Do you understand?
The government said
At least 80,000
You are not even showing that much
That's why
We will take the expected rent of 90,000
Whatever is more than both
I compared it with 72
What is more than both? 90,000 So 90,000 So In the first
case
In the second case
I would like you to solve it
I will also do it later
Do it
It is 55,000
Municipal And 60,000
What is more than both? 60,000 The expected is 60,000
How will it be compared?
With the actual
We will have to see
Is there a limit of standard rent?
The government has put a limit 75,000 75,000 is below
If you go up
You have to wait
If it is below
Then what is the problem?
Let's go ahead compared to India?
How much is the actual rent? 72,000? Now look at this.
This is upside down.
In this, the government says that the rent is 60,000.
You must have 60,000.
I am 72,000.
I am an honest man.
I will be a part of the country.
I will be the only man to bring 6 days.
You are saying 60,000.
I am 72,000.
Modi ji said, wow, friends.
Well done.
This is the need of the citizens.
Now do one thing.
You were shouting a lot.
Now pay 72,000.
If you compare the actual rent and this, what will be more?
72,000.
This is it, friends.
You will understand one and do the other.
This is the simple thing.
Let's see the answers.
Do you want to solve the next one?
Solve the last one for me.
I am wearing a coat today.
I will not lie.
Solve the third one for me.
Solve the third one for your brother.
What does the third one say?
What is more between the two?
Both are equal.
What should we do in this?
If they are equal, then let's take equal.
Okay, let's take equal.
What will be the expected rent? 65,000.
If it is not more than that, then 65,000.
But is there a limit for the standard rent?
The government says that if there is a limit, then you can
take the rent by mistake.
The government has said that in this case, it is Rs.
So how much can I take on the maximum side?
Rs. 18,000.
That's it.
I cannot go above this.
What is the actual amount?
Actually, it is Rs. 60,000.
What is Rs.
What will be the answer?
There was nothing.
This was the whole thing.
Sir, you are telling your complicated stories.
Sometimes you are saying Rs.
72,000, sometimes Rs.
60,000, sometimes Rs.
You are asking questions.
Where is the answer?
I am not lying.
Wait, I will tell you the answer too.
Why do you doubt the teacher?
This is absolutely wrong.
I will show you the answer.
This is the answer.
Look at this.
Look at Nalaya.
Rs. 90,000, Rs. 72,000, Rs. 60,000.
I told you.
Brother is here.
He will explain everything.
Absorb it.
Understand this.
It is a calculation of gross annual value.
Not everyone understands it.
On a very serious note, we made a joke out of it and ended
it.
Not everyone understands it.
Did you understand?
Very good.
You have a very good IQ level.
You are in the world class.
Okay, sir.
So, this topic.
What was it?
To calculate the gross annual value.
Whose gross annual value?
The whole year of that house that you have rented.
The house that you have rented.
Sir, it is also possible that the house that I have rented
that I have rented that no one came to rent it.
That house was such that there was so much property in that
house that whoever came to live in that house would get
ruined.
He would beg on the streets.
There was so much property in that house.
So, I said at least someone should come.
So, for 12 months to 11 months that house was left empty.
A man from abroad came.
I made him mad.
I said, do one thing, you stay.
That man stayed in my house for a month.
Now, understand this.
I had already thought that I will rent this house.
I could not rent it for the whole year.
And for the whole year,
I only rented it for a month.
Now, what to do?
The calculation that we were thinking till now, if you
think carefully, then you will see that the calculation
that we were doing till now was that both should be more.
Right? We were doing this till now that expected versus
actual.
We were doing this.
Now, this will come for a month.
This will come for a month.
And this will come for the whole year.
Now, what to do?
This will be wrong.
This will come for the whole year.
And this will come for a month.
My house was occupied for a month.
So, what to do?
So, the government said, do one thing, don't take tension.
The actual rent that you will get from that house, gross
annual value will be there.
Don't read too much into it.
Simple, the actual rent that you will get in the whole
year, if it is for a month, then hold the actual value for
a month.
Accept it as your gross annual value.
That's it.
There is no problem in this.
Read it again.
That there is no problem in this.
That is the problem.
The problem is that the actual rent of a house is less than
what is expected.
Think about this.
The government will say that the actual rent of a house is
less than what is expected.
If you visit a market and you ask
So you will put a value of Rs. 60,000 here, but actually I
had only one month.
Then why will I pay Rs. 60,000 tax? I have only Rs. 5000 in
my pocket.
I have only Rs. 5000 in my pocket.
The government is not saying, leave Rs. 5000, you pay Rs.
60,000 tax.
This is wrong with me.
If I don't have it in my pocket, then why will I pay tax?
So this issue arose.
People went to the government and said that you are doing
this wrong.
So the government said that this is right.
So you do one thing, we will give you a benefit.
You consider the actual rent as your GAB and go.
This is it, friends.
It is a simple thing.
So we covered both the let-out property.
The property that is let-out throughout the year and the
property that is not let-out throughout the year.
Basically, it is on rent for a year.
So we end the let-out case here.
I hope you understood this lecture.
And if you don't understand any point, then you can rewind
this lecture.
And you can understand the concept.
Thank you friends.
You have maintained your concentration.
This lecture and the previous lecture were a little hard.
But you did not give up hope.
And believe me friends,
Today your teacher is telling you one thing,
The child who never gives up hope,
One day he will go very far.
With this, I would like to say goodbye friends.
Thank you very much.