Valuation of residential house under rule 1-BB of the Wealth-tax Rules-Clarification regarding - Income Tax - 355/1983

Valuation of residential house under rule 1-BB of the Wealth-tax Rules-Clarification regarding Circular No. 355 Dated 28/2/1983 Rule 1-BB of the Wealth-tax Rules, 1957, which has come into effect from 1-4-1979 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 for 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. Yours faithfully, (Sd.) P. Ranganathan Under Secretary, Central Board of Direct Taxes.