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Annual value of house property is the amount for which a property might reasonably be expected to be let from year to year. Under the Income-tax law, income from house property is generally computed on the basis of its annual value. The annual value represents the capacity of the property to earn rent rather than merely the rent actually received. The concept is important for determining taxable income under the head “Income from House Property.” For a let-out property, the annual value is generally determined with reference to the expected rent and actual _________ __________ __________ __________ _______ _____ ______ ________ _____ _________ ___.
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