CAF-2 · Chapter 6 · Question 3 of 15
Mr. Kashif let out his commercial property at a monthly rent of Rs. 100,000. However, the fair market rent for a similar property in the same area is Rs. 130,000 per month. What amount will be considered as gross rent chargeable to tax for the full tax year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) Rs. 1,560,000
Explanation
Where the rent received or receivable is less than the fair market rent for the property, the person shall be treated as having received the fair market rent (Rs. 130,000 x 12 = Rs. 1,560,000).
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