Ascertainment of annual value

Ascertainment of annual value.

1. (1) [Subject to the conditions] specified in sub-section (2), the annual value of property shall be deemed to be-
   • (a) in the case of property let on rent to the amount of rent at which the property may reasonably be expected to be let from year to year, provided that the rent at which the property is actually let shall be taken as the annual value if the rent so derived is higher than the amount of rent at which the property may reasonably be expected to be let from year to year; and Provided that if any property has been let along with any machinery or plant, the rent of such machinery or plant shall be excluded in determining the annual value : Provided further that where the property is in the occupation of a tenant and under the rental agreement the owner is liable to pay any amount of rent, rate or tax which, but for such agreement, was payable by the tenant, the said amount shall be deducted from the rent received or receivable in determining the annual value of the property. (2)
   • (a) When the property is let out to a tenant along with furniture other than fixture an allowance to the extent of rent actually received or receivable in respect of such furniture and if it is not separately fixed, such sum as the Assessing Authority may consider reasonable rent for such furniture but not exceeding twenty per centum of the annual value of the property ;
   • (b) an allowance for the expenses incurred on the repairs and maintenance of the building but not exceeding ten per centum of the annual value of such building ;
   • (c) sums paid as land revenue and as premium to insure against the risk or damage to the property.