The annual value of the house refers to the gross rental income from the house property in particular income year. It is the amount for which the property might be let out on a yearly basis. Municipal Value is the value determined by local authorities by making a periodical survey of all buildings in their jurisdiction. Such valuation helps in charging municipal tax.
Differentiate between Annual Value and Municipal Value are briefly described below –
- Definition: Annual value may be defined as the sum for which the property consisting of building, furniture and fixture, land and apartment thereof that might reasonably be expected to let out from year to year.
- Value: Annual value is the amount received from the tenants.
- Consideration: It will come in the calculation of tax liability, if it as higher than the municipal value.
- Definition: The municipal authorities have a host of factors which they consider to arrive at a municipal value of your property on which municipal taxes are then levied. So the municipal value of your property is the value the municipal authorities assign to it.
- Value: Municipal value specified by the municipal authority.
- Consideration: It wail coat in the calculation of tax liability, if it is higher than the annual value.