68 Practical Questions of House Property

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Income Tax Income from House Property

Practical Questions on House Property


Q.1 MV: 60,000
FRV: 80,000
SR: 70,000
AR: 90,000
Find GAV.

Q.2. MV: 60,000


SR: 40,000
AR: 30,000
Find GAV.

Q.3. FRV: 90,000


SR: 60,000
AR: 1,00,000
Find GAV.

Q.4. MV: 60,000


FRV: 80,000
AR: 1,00,000
Find GAV.

Q.5. MV : 2,00,000 p.a.


FRV : 3,00,000 p.a.
SR : 3,50,000 p.a.
AR : 50,000 p.m.
Municipal TAXES : Rs.10,000
(a) M. Tax : 10,000 (Out of which Rs.6,000 paid by tenant)
(b) M. Tax due Rs.16,000
(c) M. Tax : Levied 10%
Paid : 50% of Levied
(d) M. Tax : 10,000 (out of which Rs.7,000 belongs to last 2 years)
(e) M. Tax : 20,000 (paid by tenant on behalf of owner)

Q.6. Bharat owns a house property which is let-out for Rs.7,500 p.m. The fair rent of the property
is Rs.1,00,000. Municipal tax paid during the year for each half year is Rs.4,200. The tenant
has spent Rs.12,000 towards repairs of the property during the year. Compute the income
from house property.

Q.7. Calculate Gav –


a) Let out – 9 months @ Rs.10,000 p.m.
Vacant – 3 months
Expected Rent – Rs.1,30,000
b) Let out – 9 months @ Rs.10,000 p.m.
Vacant – 3 months
Expected Rent Rs.1,10,000

1
Income Tax Income from House Property
Q.8. Mr. A let out his property from 1st July 21 to 31st Dec 21 @ Rs.10,000 p.m. Rest of the three
months property remained vacant. However, construction of the property completed on 30
June 21. Expected rent is Rs.1,50,000. Calculate Annual Value.

Q.9. Mr. X let out his property from 1 August 21 @ Rs.10,000 p.m. However, the construction
was completed on 30 June 21. Expected rent is Rs.1,50,000.
Find out Gross Annual Value.

Q.10. MV : 1,60,000
FRV : 2,00,000
SR : 2,50,000
AR : Let Out : 25,000 p.m. for 10 month
Self-occupied : 2 month

Q.11. MV : 1,00,000
FRV : 1,20,000
SR : 1,50,000
AR : 0

Q.12. Municipal value of a house is Rs.80,000, Fair rent, Rs.1,60,000, Standard rent Rs.1,20,000.
The house property has been let for Rs.16,000 p.m. and was vacant for one month during the
previous year 2021-22. Municipal taxes paid during the year were Rs.60,000. Compute the
annual value for assessment year 2022-23.

Q.13. MV : 1,20,000
FRV : 2,00,000
SR : 1,50,000
Let out : 15,000 p.m. till 31.10.2021
Vacant : 1.11.2021 to 31.1.2022
Let out : 20,000 p.m. from 1.2.2022 to 31.3.2022
Municipal taxes = 15%

Compute annual value.

Q.14. MV : 70,000
FRV : 90,000
SR : NA

SO : 1.4.2021 to 31.7.2021
LO : 1.8.2021 to 31.3.2022 @ 9,000 p.m.

Compute Annual value.

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Income Tax Income from House Property
Q.15. Date of Loan : 1.4.2019
Amit. Of Loan : 50,00,000
Rate of Int. : 1% p.a.
Property completed : 14.11.2020
Calculate Interest on Loan for the A/Y 2022-23.

Q.16. Date of Loan : 1.7.2017


Amit. Of Loan : 5,00,000
Rate of Int. : 1% p.a.
Property completed : 09.10.2021
Calculate Interest on Loan for the A/Y 2022-23.

Q.17. Date of Loan: 1.4.2019


Amt. of loan: 10,00,000
Rate of Int.: 10% p.a.
Property completed: 1.8.2021
50% loan’s repaid on 1.8.2020
Calculate Interest on Loan for the A/Y 2022-23.

Q.18. Date of Loan: 1.4.2018


Amt. of loan: 20,00,000
Rate of Int.: 1% p.a.
Construction started on: 10.1.2022
Construction completed on: 31.3.2022

30% loan’s repaid on 1.1.2020


20% loan’s repaid on 1.1.2022

Calculate Interest on Loan for the A/Y 2022-23.

Q.19. Date of Loan: 1.4.2018


Amt. of loan: 50,00,000
Rate of Int.: 1% p.a.
Property completed: 31.3.2022

Rs.20L loan’s repaid on 1.8.2019


Rs.20L loan’s repaid on 1.8.2020
Rs.10L loan’s repaid on 1.8.2021
Calculate Interest on Loan for the A/Y 2022-23.

Q.20. Date of Loan: 1.4.2020


Amt. of loan: 10,00,000
Rate of Int.: 10% p.a.
Property completed: 31.3.2021

Calculate Interest on Loan for the A/Y 2022-23.

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Income Tax Income from House Property
Q.21. Date of Loan: 1.4.2020
Amt. of loan: 5,00,000
Rate of Int.: 10% p.a.
Loan is taken for Repair of the house property & Repair is completed on 31.3.2022.

Calculate Interest on Loan for the A/Y 2022-23.

Q.22. Date of Loan: 1.4.2015


Amt. of loan: 10,00,000
Rate of Int.: 10% p.a.
Property completed: 31.3.2017
Calculate Interest on Loan for the A/Y 2022-23.

Q.23. Mr. Amit owns a house property in Delhi. From the particulars given below compute the
income from house property for the assessment year 2022-23.

Rs.
Municipal value 3,00,000
Standard rent 2,40,000
Fair rent 2,00,000
Actual rent (per month) 23,000
Municipal taxes 10% of municipal value
Municipal taxes paid during the year 50% of tax levied
Expenses on repairs 20,000
Insurance premium 5,000
Ground rent 6,000
Land revenue 10,000

Mr. Amit had borrowed a sum of Rs.16,00,000 @ 10% p.a. on 1.6.2019 and the construction
of the property was completed on 31.3.2021.

Q.24. Mr. Amit has a house property in Delhi whose particulars are as under:
Standard rent 3,12,000
Municipal taxes paid (5% of MV) 50,000
Interest on money borrowed 1,80,000
Period of occupation for own residence 2 months
Actual rent for 10 months 35,000 p.m.

Compute the income from house property.

Q.25. What will be your answer in above question if SR is not applicable.

4
Income Tax Income from House Property
Q.26. Mr. X has a house property at Rohini in Delhi. He stays with his family in this house. The
rent of similar property in the neighborhood is Rs.66,000 per annum. The municipal valuation
Rs.38,000. Municipal taxes paid in respect of the property are Rs.15,000. The house was
constructed in 1998 with a loan of Rs.20,00,000 taken from HDFC. During the previous year
2021-22, the assessee refunded Rs.3,80,000 which includes Rs.3,00,000 as current year
interest. Compute the income from house property.

(b) What would be the deduction on account of interest if the loan was taken on or after
1.4.2010 and the property was completed in December, 2012.

Q.27. House 1 (Rohini) House 2 (South Ex.) House 3 (KB)


SO SO SO
MV 1,00,000 3,00,000 4,00,000
FRV 1,50,000 4,00,000 5,00,000
SR 1,30,000 3,50,000 4,50,000
M. Tax 10,000 30,000 40,000

Q.28. House 1 (Rohini) House 2 (South Ex.) House 3 (KB)


SO SO SO
MV 1,00,000 2,50,000 3,00,000
FRV 2,00,000 3,50,000 4,00,000
SR 1,50,000 --------- --------
M. Tax 10,000 20,000 NIL
Int. on Loan 40,000 (for repair) 2,10,000 (for const.) 70,000 (Const.)

Q.29. Mr. Amit owns a big house in Delhi. 60% of the property is let out for Rs.25,000 p.m. and
40% portion is self-occupied by him.
Compute his income from house property from the following information submitted to you:

Particulars Rs.
Fair rent 22,000 p.m.
Standard rent 20,000 p.m.
Municipal taxes paid (10% of MV) 20,000
Interest on money borrowed 1,80,000

Q.30. LO : 10,000 p.m. for 12 month


UR : ------------------ 1 month
ER : 1,50,000

Q.31. LO : 15,000 p.m. for 10 month


Vacant : ----------------- 2 month
UR : ------------------ 1 month
ER : 2,00,000

Q.32. LO : 20,000 p.m. for 10 month


SO : ------------------ 1 month
V: ------------------ 1 month
UR : ------------------ 3 month
ER : 3,00,000
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Income Tax Income from House Property
Q.33. ER : 2,00,000
AR/R :
LO : 10,000 p.m. for 12 month
Arrears of Rent (Belongs to last year) : 40,000

Q.34. Three brothers A, B and C having equal share are co-owners of a house property consisting of
six identical units, the property was constructed on 31.5.1998. each of them occupies one unit
for his residence and the other three units are let out at a rent of Rs.15,000 per month per unit.
The Municipal Value of the house property is Rs.8,00,000 and the Municipal Taxes are 60%
of such Municipal Value, which were paid during the year. The other expenses were as
follows:
Particulars Rs.
Land revenue 25,000
Ground rent 22,000
Insurance Premium (due but not paid) 16,000
Interest payable on loan taken for construction of house 2,60,000
A could not occupy his unit for six months as he was transferred to Mumbai. He does not
own any other house. The other income of A, B and C are Rs.3,00,000; Rs.4,00,000 and
Rs.5,00,000 respectively.
Compute the income under the head “Income from House Property” and the total income of
Q.35. L.O:
the three10000 pm for
brothers for assessment
12 Month year 2018-19.
UR: ----------- 1 Month
ER: 150000

Calculate GAV.
Q.36. L.O: 15000 pm for 12 Month
Vacant: ------------ 2 Month
UR: ----------- 1 Month
ER: 200000

Calculate GAV.

Q.37. L.O: 20000 pm for 10 Month


SO: --------- 1 Month
V: ------- 1 Month
UR: -------- 3 Month
ER: 300000

Calculate GAV.

Q.38. Mr. X recovered Rs. 60000 unrealise Rent in the P/Y 21-22. Earlier this unrealise rent was
not allowed as deduction in the P/Y 16-17. Find out taxability of URR.
Q.39. Mr. X recovered Rs. 60000 unrealise rent in the P/Y 21-22 which was already allowed as
deduction in the P/Y 16-17. Find out taxability.

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Income Tax Income from House Property
Q.40. Mr. X recover Rs. 25000 as unrealise rent in the P/Y 21-22 which was allowed as deduction
in the P/Y 2017-18. However in the P/Y 2019-20 he had sold such property. Find out
taxability.

Q.41. P/Y 2017-18


UR: 25000
Ded.: 10000

2021-22
URR: 16000

Discuss taxability.

Q.42. R furnishes the following particulars in respect of a house property owned by him in Delhi.
Rs.
Municipal Value 3,00,000
Standard Rent 3,05,000
Municipal Taxes Paid 40,000
Period of occupation for own residence 3 months
Actual rent for 9 months @ Rs.35,000 3,15,000
He borrowed Rs.20,00,000 @ 12% p.a. from LIC Housing finance on June 1, 2019 and the
house property got completed on February 28, 2020.

Compute his income from house property for the Assessment Year 2022-23.

Q.43. X owns a residential house property. It has two equal residential units, Unit 1 and Unit 2.
While Unit 1 is self-occupied by X for his residential purpose, Unit 2 is let out (rent being
Rs.6,000 per month, rent of two months could not be recovered). Municipal value of the
property is Rs.1,30,000, standard rent is Rs.1,25,000 and fair rent is Rs.1,40,000. Municipal
tax is imposed @ 12% which is paid by X. Other expenses for the previous year 2021-22
being repairs Rs.250, insurance Rs.600, interest on capital (borrowed on 1-1-2009) for
constructing the property Rs.5,00,000.
Find the income of X for the A/Y 2022-23 on the assumption that income of X from other
sources is Rs.4,00,000.

Q.44. Mr. Kumar owns a big house which has three independent residential units. First unit (50% of
the floor area) is let out for residential use on a monthly rent of Rs.18,000 (this unit is,
however, used for his own residential purpose from 16 January, 2022 to 15 March 2022).
Unit 2 comprising 25% of the floor area is used by him for his own residence while unit 3
comprising another 25% is used for his own business.
Other particulars in respect of the house property are:
(i) Municipal valuation Rs.3,84,000
(ii) Municipal taxes paid Rs.32,000
(iii) Repairs Rs.40,000
(iv) Ground rent Rs.25,000
(v) Fire Insurance premium Rs.20,000
(vi) Land revenues Rs.10,000.
Income of Mr. Kumar from business is Rs.3,60,000 (without debiting house rent). Determine
taxable income of Mr. Kumar for the assessment year 2022-23.
7
Income Tax Income from House Property
Q.45. Mr. K.K. owns a house whose municipal value is Rs.4,50,000 p.a. Its 60% portion is let out at
a monthly rent of Rs.26,000 and remaining 40% portion is occupied by him for his own
residence. Construction of this house commenced on May 1, 2017.
On July 1, 2018, he raised a housing loan of Rs.40,00,000 @ 10% from State Bank of India.
The House was completed on December 1, 2020. He incurs the following expenses in respect
of the house during the previous year.
(i) Rs.50,000 were paid by way of Municipal Taxes including Rs.5,000 in respect of
2020-21.
(ii) Repairs Rs.50,000
(iii) Ground rent Rs.10,000
(iv) Fire Insurance premium Rs.10,000
Compute his chargeable income from House Property assuming that entire loan amount is
outstanding.

Q.46. Calculate Reasonable Expected Rent from the following details:

Particulars House 1 House 2 House 3 House 4 House 5


Gross Municipal Value (a) 10,000 12,000 12,000 18,000 16,000
Fair Rent (b) 8,000 16,000 16,000 10,000 17,000
Higher of the [(a) and (b)] [A] 10,000 16,000 16,000 18,000 17,000
Standard Rent as per Rent Control 10,000 14,000 N.A. 8,000 20,000
Act [B]

Q.47. Calculate Gross Annual Value for the following house properties.
(Rs. in ‘000)

Particulars H1 H2 H3 H4 H5 H6
Gross Municipal value for the whole year 120 130 140 150 160 180
Fair rent for the whole year 105 115 135 155 175 168
Standard rent (for whole year) NA 100 135 180 165 144
Actual rent receivable 100 110 135 175 200 100
Period of the previous year (in months) 12 12 12 12 12 10

Q.48. Find out the gross annual value in case of the following properties let out throughout the
previous year for the assessment year 2022-23.
(Rs. in ‘000)

Particulars H1 H2 H3 H4 H5
Municipal annual value 90 500 30 100 315
Fair rent 300 300 300 300 300
Standard rent under the Rent Control Act 50 800 240 250 500
Actual rent receivable p.a. 120 600 180 360 150
Unrealised rent of the P.Y. 2021-22 (in terms of months) 2 3 1 3 2

8
Income Tax Income from House Property
Q.49. Find out the Gross annual value in case of the following properties
(Rs. in 000)

Particulars H1 H2 H3 H4 H5 H6
Gross Municipal Value p.a. 200 300 400 500 300 300
Fair rent p.a. 300 600 750 180 200 400
Standard rent under the Rent Control Act p.a. 300 180 280 225 250 240
Actual rent p.a. 600 900 300 240 216 240
Property remains vacant (in number of month) 1 3 2 1 2 1

Q.50. X owns a house property in Pune, details relating to which are Municipal value Rs. 2,00,000
p.a., Fair rent Rs. 1,80,000 p.a., Standard rent Rs. 2,10,000 p.a. It is let out throughout the
previous year (rent Rs. 10,000 p.m. up to 15/10/2021 and Rs. 12,000 p.m. thereafter). The
property is transferred by X to Y on February 28, 2022. However, Y failed to recover rent for
March, 2022. Find gross annual value of the property in the hands of X and Y for the A.Y.
2022-23.

Q.51. Find out the gross annual value in respect of the following properties for the A.Y. 2022-23
(Rs. in ‘000)

Particulars H1 H2 H3
Gross Municipal value 150 180 120
Fair rent 140 140 240
Standard rent 120 240 300
Actual rent if property is let out throughout the previous year 21-22 180 300 150
Unrealised rent of the previous year 2021-22 25 40 20
Unrealised rent of the year prior to the previous year 2020-21 30 50 60
Period when the property remains vacant (in number of months) 3 1 -

Q.52. Find out the gross annual value in the following cases for the A.Y. 2022-23:

Particulars H1 (Rs.) H2 (Rs.)


Situated at Chandigarh Amritsar
Municipal value p.a. 60,000 60,000
Fair rent p.a. 70,000 70,000
Standard rent under the Rent Control Act p.a. 80,000 50,000
Actual rent p.m.:
From April 1, 2021 to July 31, 2021 5,000 6,000
From October 1, 2021 to February, 2022 9,000 8,500

For the remaining period properties were vacant.

9
Income Tax Income from House Property
Q.53. Find out the gross annual value in respect of the following properties
(Rs. in thousands)
Particulars H1 H2 H3
Value determined by the Municipality for determining Municipal 500 800 600
tax
Rent of the similar property in the same locality 400 900 600
Rent determined by the Rent Control Act 700 720 700
Actual rent receivable 350 540 600
Unrealised rent of the previous year 2021-22 10 Nil 150
Period when the property remains vacant (in number of months) 5 3 2

Q.54. Compute net annual value with the following details for the A.Y. 2022-23

Particulars H1 H2 H3 H4 H5 H6
Situated at Patna Anand Hyderabad Balurghat Jodhpur Etawa
Municipal Value Rs. Rs. Rs. Rs. Rs. Rs.
1,00,000 2,00,000 3,00,000 4,00,000 4,25,000 6,00,000
Gross Annual Rs. Rs. Rs. Rs. Rs. Rs.
Value 1,00,000 2,50,000 1,80,000 5,00,000 8,00,000 5,00,000
Municipal tax for Rs. 5,000 10% 5% 20% 12% 10%
P.Y.
Sewarage Tax - 5% Rs. 1,000 3% Rs. Rs.
3,750 1,000
Water Tax - 3% 5% 2% 5% -

Additional information:
a. In case of H3, municipal tax paid for the financial year 1994-95 to 2020-21 is Rs.
2,00,000.
b. In case of H4, municipal tax paid for the financial year 2022-23 is Rs. 3,000.
c. In case of H6, all taxes charged by municipality are paid to the extent of 80% (50% by
owner and 30% by tenant).

Q.55. Following information are provided by an assessee for his house properties for computing
interest on loan allowed u/s 24(b):

Particulars H1 H2 H3 H4 H5
a) Interest on loan taken for repair of H.P. 20,000 30,000 10,000 15,000 25,000
b) Interest on loan taken for purchasing H.P. 20,000 25,000 30,000 17,000 18,000
(50% paid)
c) Interest on new loan taken for repaying old 10,000 12,000 13,000 14,000 16,000
loan which was taken for purchasing H.P.
d) Interest on loan taken for payment of 10,000 10,000 10,000 10,000 10,000
interest on earlier loan
e) Interest on loan for payment of Municipal 2,000 2,000 2,000 2,000 2,000
tax

10
Income Tax Income from House Property
f) Interest on loan by mortgaging HP3 for business -- -- 5,000 -- --
purpose
g) Interest on loan for reconstruction of HP1 paid 20,000 -- -- -- --
outside India without deducting tax at source
h) Interest on loan for reconstruction of HP2 payable -- 20,000 -- -- --
outside India on which TDS has not been deducted
and no payment yet been made
i) Interest on loan on mortgage of HP1 for renovation 10,000 -- -- -- --
of HP2

Q.56. Calculate interest on loan allowed for assessment year 2017-18 to 2022-23 from the following
information:
Loan was taken on 1/1/2013 Rs. 5,00,000 @ 12% p.a.
Construction commenced on 1/8/2013. Construction completed on 31/3/2018. Repayment
made as under:
On 1/4/2014 On 1/4/2017 On 1/4/2020 On 1/7/2021
Rs. 1,00,000 Rs. 1,00,000 Rs. 1,00,000 Rs. 1,00,000

Q.57. Mr. Rajesh owns two house properties both of which are let out. Compute his income from
the following details:

Particulars H1 H2
Situated at Gaya Mumbai
Gross Municipal value 1,00,000 2,00,000
Fair rent 95,000 2,10,000
Standard rent 90,000 2,00,000
Actual rent receivable 1,00,000 1,80,000
Unrealised rent of current year 8,000 2,000
Municipal tax 10% 1,000
Fire insurance 2,000 1,200
Repairs Nil 2,000
Interest on loan for construction (@ 12%) 10,000 Nil

Other Information:
(a) Loan taken for construction is still unpaid.
(b) Municipal tax of H1 is still unpaid, while, that of H2 is half paid by tenant.

11
Income Tax Income from House Property
Q.58. Mr. Pandey, owner of three houses in Chennai, furnished the following information. Compute
his income from house property for the assessment year 2022-23:

Particulars House No. House No. House No.


1 2 3
Self occupied Self occupied Self occupied
Standard rent under Rent Control Act 1,50,000 15,00,000 18,00,000
Municipal value 2,00,000 13,00,000 13,50,000
Fair rent 2,50,000 16,00,000 19,00,000
Municipal tax (10% of municipal
value) paid
Interest on loan taken for purchases of 90,000 1,70,000 1,65,000
houses
(Loan taken in P.Y. 2018-19)

Q.59. Sri Jayram has a house property used for own residence for 9 months and for remaining 3
months of the previous year, it was unused. Gross Municipal value of the property Rs.
6,00,000 p.a. Fair Rent Rs. 5,00,000, Standard Rent Rs. 4,00,000. He incurred repair
expenditure of ` 10,000 & paid municipal tax Rs. 5,000 during the year. Compute income
from house property in the following cases for the A.Y. 2022-23:

1. He borrowed Rs. 1,00,000 @ 12% (simple interest) on 17/8/1998 for purchase of the
house property and such amount as well as interest is still unpaid.
2. He borrowed Rs. 10,00,000 @ 12% (simple interest) on 17/8/1998 for purchase of the
house property and such amount as well as interest is still unpaid.
3. He borrowed Rs. 5,00,000 @ 12% (simple interest) on 17/8/1999 for construction of
the house property, construction of which was completed on 31/3/2000 and such
amount is still unpaid.
4. He borrowed Rs. 20,00,000 @ 18% (simple interest) on 17/8/1999 for construction of
the house property, construction of which was completed on 31/3/2000 and such
amount is still unpaid.
5. He borrowed Rs 1,80,000 @ 15% on 1/4/1998 and further borrowed Rs. 10,00,000 @
10% on 17/8/1999 for construction of the house property and such amount is still
unpaid. Construction completed on 1/2/2000.
6. He borrowed Rs. 5,00,000 @ 12% on 1/4/2001 for repairs of the house property.
7. He borrowed Rs. 1,80,000 @ 15% on 1/4/1998 and further borrowed Rs. 20,00,000 @
14% on 17/8/1999 for construction of the house property and such amount is still
unpaid. Construction completed on 1/2/2000.

Q.60. Miss Anjali owns a house property, which is let out, to her employer company for a monthly
rent of Rs. 20,000. Company allotted the same house to Miss Anjali as rent-free
accommodation. Municipal tax paid Rs. 20,000, interest on loan paid Rs. 90,000. Comment
on tax treatment under the head income from house property.

12
Income Tax Income from House Property
Q.61. Compute income under the head ‘Income from house property’ of Sri from the following
information:

Particulars H1 H2 H3 H4
Used for Self occupied Self occupied Self occupied Own Business
Situated At Mumbai Abu Kolkata Hyderabad
Gross Municipal Value 3,00,000 2,00,000 7,00,000 3,00,000
Fair Rent 2,00,000 2,00,000 6,00,000 1,20,000
Standard Rent 3,00,000 2,40,000 7,00,000 2,00,000
Municipal Tax 15% 15% 15% 15%
Repairs 13,000 4,000 8,000 8,000
Ground Rent 20,000 Nil Nil 6,000
Land Revenue Nil 10,000 Nil Nil
Interest on Loan 40,000 1,00,000 2,10,000 20,000
Loan taken on 1998-99 1998-99 2018-19 1999-00

Q.62. Miss Paro has a house property having two separate residential units (unit A covering 40% of
total area and unit B covering 60% of total area).
Unit A is self-occupied by the assessee and unit B is let out to Sri Devdas for a monthly rent
of Rs. 3,000.
With the following further information, compute her taxable income from house property:
Municipal Value Rs. 1,00,000 Municipal Tax 10%
Fair Rent Rs. 1,20,000 Interest on Loan Rs. 30,000
Standard Rent Rs. 2,00,000 Annual charge Rs. 5,000

Q.63. Mr. Rana used his house property for self-occupation till 1/8/2021 and let out the same for
remaining period for rent of Rs. 6,000 p.m. Compute his income from house property from
the following details: Municipal value Rs. 1,00,000, Fair Rent Rs. 80,000, Standard Rent Rs.
96,000, Municipal tax 16%, Interest on loan Rs. 10,000.

Q.64. How shall your answer differ if in the above illustration, property is let out to tenant from
1/4/2021 to 1/12/2021 and from 1/12/2021 to 1/3/2022, it was self-occupied. Standard rent of
such property is Rs. 50,000.

Q.65. Miss Rani used her house property for self-occupation till 1/9/2021 and let out the same for
remaining period for rent of Rs. 6,000 p.m. Municipal tax paid Rs. 5,000, interest on loan
accrued Rs. 10,000. Compute her taxable income from house property.

Q.66. Mr. Ajnabi has a house property in Cochin. The house property has two equal dimension
residential units. Unit 1 is self occupied throughout the year and unit 2 is let out for 9 months
for Rs. 10,000 p.m. and for remaining 3 months it was self-occupied. Compute his taxable
income from the following details: Municipal value Rs. 2,00,000, Fair Rent Rs. 1,60,000,
Standard rent Rs. 3,00,000, Municipal tax 10% (60% paid by assessee), Interest on loan Rs.
40,000, Expenditure on repairs Rs. 20,000.

13
Income Tax Income from House Property

Q.67. Mr. Lucky Ali owns a house property let out since 1/4/2017 to a school for monthly rent of
Rs. 10,000. There was no change in rent till 31/3/2021. On 1/4/2021, as per court decision
rent was increased to Rs. 12,000 p.m. with retrospective effect from 1/4/2019 and duly paid
by school in the same year. Legal expenditure for such suit has been incurred by Mr. Ali Rs.
30,000. Discuss tax treatment u/s 25A.

Q.68. X Ltd. has two house properties both of which are vacant. Municipal value of 1st house
property is Rs. 1,00,000 and that of 2nd is Rs. 80,000. It has computed income from house
property as under:

Particulars Details Amount


HP1: Self occupied [Sec. 23(2)(a)]
Net Annual Value (NAV) Nil
Less: Interest on loan u/s 24(b) Nil
Income from HP1 Nil
HP2: Deemed to be let out [Sec. 23(4)]
Gross Annual Value (GAV) 80,000
Less: Municipal tax Nil Net Annual Value (NAV) 80,000
Less: Standard deduction u/s 24(a) @ 30% of NAV 24,000 56,000

Income from house property 56,000


Do you agree with the computation of income from house property of the assessee.

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