For instance, if the annual fair rent of an apartment is Rupees 2.40 lakh, the municipal value is Rupees 1.80 lakh, and the standard rent is Rupees 3 lakh. To calculate the expected rent, take the higher of the fair rent and municipal value. In this case, the fair rent of Rupees 2.40 lakh is the higher of the two.
The standard rent is determined under the Rent Control Act. If the standard rent has been fixed for any property under the Rent Control Act, the property owner cannot charge a rent higher than the standard fixed rent. The Gross Annual Value (GAV): This is the highest of: Rent received. Fair market value.
Rental value is the fair market value of property while rented out in a lease. More generally, it may be the consideration paid under the lease for the right to occupy, or the royalties or return received by a lessor also known as the landlord under a license to real property.
Standard rent is the rent determined under Rent Control Act. The property owner cannot charge a rent higher than the standard rent fixed under Rent Control Act. Net Annual Value (NAV) is the value calculated as Gross Annual Value minus Municipal taxes paid.
Reference: Rent Control Act