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Loss due to vacancy & GAV
Direct Taxation
Hi sir/mam, I'm fully confused between what is taught in indigolearn lecture and notes given in ICAI, on arriving "GAV in case of vacancy loss". I'm getting different answers while solving using those 2 ways. Please explain what is the difference between the two? I have attached the pics of the 2 ways....
Answers (3)
CA Suraj Lakhotia Admin
Pls share the question and answers you got
Sir...... I have attached the question and answers
Thread Starter
Girinath ASir...... I have attached the question and answers
Both the concepts are same with different presentations. 1. Say, You let out the property for 10 months. Rent received is Rs. 14,000. So, total rent received for 10 months is Rs. 1,40,000. The difference of Rs. 1,000 is not due to vacancy. But it is because you collected less than reasonable. So, this is not a vacancy loss. 2. For remaining 2 months, you did not received any rent. The reason behind that was the house property was vacant. So, vacancy loss is Rs. 30,000 To make it more clear, Total reasonably expected rent for the year is Rs. 1,80,000 and loss due to vacancy is Rs. 30,000. So GAV is Rs. 1,50,000
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