Scope of gross rent
25. (1) The gross rent in respect of a property shall be the higher of the amount of contractual rent and presumptive rent, for the financial year.
(2) The contractual rent referred to in sub-section (1) shall be the rent receivable by the assessee under a contract, whether in writing or otherwise.
(3) The presumptive rent referred to in sub-section (1) shall be six per cent. of -
(a) the ratable value fixed by any local authority in respect of the property; or
(b) the cost of construction or acquisition of the property if no such value has been fixed by the local authority.
(4) The gross rent shall, regardless of anything to the contrary contained in subsection (1), be taken to be nil if the property consists of a house or part of a house which is not let out.
(5) The provisions of sub-section (4) shall not apply if-
(a) the house or part of the house is actually let during any part of the financial year; or
(b) any other benefit is derived from it by the owner.
(6) The provisions of sub-section (4) shall, in a case where a person owns more than one house, apply only in respect of one house, which the person may specify at his option.
