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Loss due to vacancy

Direct Taxation

Reasonable expected rent = 1,80,000 (@15,000 p.m.) Actual rent received/ receivable = 1,40,000 (@14,000 p.m.) Vacancy period = 2 months. What is loss due to vacancy? 30,000 or 28,000? which one of the above 2 is correct?

Girinath A

CA Inter

★ 765

20-Aug-22 19:46

675

Answers (6)

Ans:30000(15000*2) because higher of expected rent or actual rent

Shankari C

CA Inter

★ 12K+

20-Aug-22 21:55

Shankari C

Ans:30000(15000*2) because higher of expected rent or actual rent

Still I didn't get clarity.... can you please check the image and then answer which one of the two is correct?

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Thread Starter

Girinath A

CA Inter

★ 765

20-Aug-22 22:18

In case of vacancy GAV = Actual rent

Bachina Vignesh

CA Inter

★ 7K+

20-Aug-22 22:40

Thread Starter

Girinath A

Still I didn't get clarity.... can you please check the image and then answer which one of the two is correct?

Elavarasi B

CA Inter

★ 46K+

21-Aug-22 08:49

Bachina Vignesh

In case of vacancy GAV = Actual rent

GAV = expected rent because actual rent including loss due to vacancy is lower than expected rent so we take expected rent as GAV

Elavarasi B

CA Inter

★ 46K+

21-Aug-22 08:52

Loss due to vacancy is Rs. 30,000 (15000 x 2)

Yoga Vishnu

CA Final

★ 11K+

22-Aug-22 10:35