Finding the best selling price for your property could be difficult when the time comes to sell it. When in confusion, you are more likely to use municipal assessment data than a licenced evaluator. But first, you must also know in detail what is municipal value of house property.
Know about the municipal value in detail from the experts at NoBroker. Opt for NoBroker seller plans to sell your property at the best rates.What is the municipal value of house property?
The local government conducts a periodic survey of all the properties that fall within its purview. This survey is used to determine the property's value, or what is known as the Municipal Value. Based on the property's municipal value, the amount of municipal tax that will be imposed is determined. The Gross Annual Value (GAV) of the House Property may be reduced by the Municipal Tax paid on the House Property. This tells you what is municipal rental value.
How to calculate municipal value?
A = Actual Rent Paid - Actual rent paid for rented property is determined by the owner-tenant agreement. Actual rent received also includes any payments made on the owner's behalf by the renter.
B = Fair Rent - It refers to the amount of rental income that a nearby home with comparable features and services can command.
C = Average Rent - Rent set under the Rent Control statute: States like Tamilnadu have a rent control statute, which stipulates that rent, even if it is only a small amount, is set.
D = Municipal Value - It is comparable to the guideline value or circle rate. A local municipal body or municipal committee sets the rental price.
The following formula, which is stated in the income tax statute, can be used to compute Notional Rental Income from House Property after computing the previous values:
Z = higher of B or D, i.e., Fair Rent Value or Municipal Value, whichever is higher.
Y = Expected Rent - Lower of Z or C
Gross Annual Value of the Property = Higher of Expected Rent or Actual Rent Received = Higher of Y or A
The actual rent received will often equal the gross annual value of the property for the purposes of calculating income from house property.
Net Annual Value is calculated as Gross Annual Value minus Municipal taxes, such as the property tax and sewage tax.
What is municipal value must be clear to you now.
Read More: How to calculate the market value of the property? How to arrive at the value of the property? How built property value depreciation work in India?Your Feedback Matters! How was this Answer?
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What is municipal value?
Suresh
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2023-05-22T07:29:34+00:00 2023-05-22T19:59:21+00:00Comment
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