The rateable value of a property is an assessment of its rental value determined by local authorities for the purpose of calculating rates or taxes. It serves as the basis for determining the amount a property owner must pay in rates or taxes to the local government. So let me tell you how to calculate rateable value of property in detail here.
How is Rateable Value Calculated?
In India, the rateable value of a property can be calculated using the formula:
Annual rental value = Monthly rental value x 12 – 10%.
For example, let's say a property in Mumbai has a monthly rental value of Rs 20,000.
By applying the formula, we get Rs 20,000 (monthly rent) x 12 = Rs 240,000 (annual rental value). Subtracting 10% of Rs 240,000 (which is Rs 24,000) yields Rs 216,000.
Therefore, the rateable value of the property in this scenario would be Rs 216,000. This calculation provides a method for estimating the property's value for taxation or assessment purposes, taking into account its rental income and applying a standard deduction. So this is how to calculate rateable value.
You can consult with a professional to get a better idea of it.
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Authors Of The Question
How to Calculate Rateable Value of Property?
Varsha
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1 Answers
7 months
2024-05-06T08:44:46+00:00 2024-05-06T08:59:10+00:00Comment
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