Gross Annual Value (GAV)

Gross Annual Value (GAV) – Gross Annual Value (GAV) refers to the annual value of a property that is used to calculate income from house property under the Income Tax Act. It represents the potential rental income a property can generate in a year, regardless of whether it is actually rented out or not. The GAV is determined based on the higher of the following: Actual rent received or receivable, Fair rental value (expected rent based on similar properties), or Standard rent, as defined under the Rent Control Act (if applicable).

Example: If a property could earn ₹3,00,000 as rent in FY 2022–23, that amount is considered its Gross Annual Value, and it will be assessed for taxation in AY 2023–24