1382. Whether, in a case where rent of residential house is pegged at certain level, rent actually received/receivable should be the basis for arriving at gross maintainable rent for the purposes of rule 1BB
1. Rule 1BB of the Wealth-tax Rules, 1957 which has come into effect from April 1, 1979 prescribes the mode of valuing a house which is wholly or mainly used for residential purposes.
2. The Board has considered the question whether in a case where the rent of such a house is pegged at a level and cannot be increased, the rent actually received/receivable should be the basis arriving at the “gross maintainable rent” for the purpose of the rule.
3. It is hereby clarified that in such cases the rent actually received or receivable by the owner of the house would ordinarily be the basis for arriving at the gross maintainable rent.
Circular: No. 355 [F.No. 328/74/82-WT], dated 28-2-1983.