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5.2 Home Assignment Questions - House Property

The document contains 7 multiple choice questions regarding the calculation of income from house property under the Indian Income Tax Act. Each question provides details of a property such as municipal valuation, rent received, vacancy period, taxes paid, interest on loans, and asks to compute the income from house property and tax liability. The hints provided give the gross annual value amounts, income from house property amounts, and tax payable in each case.

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Aashi Gupta
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93 views

5.2 Home Assignment Questions - House Property

The document contains 7 multiple choice questions regarding the calculation of income from house property under the Indian Income Tax Act. Each question provides details of a property such as municipal valuation, rent received, vacancy period, taxes paid, interest on loans, and asks to compute the income from house property and tax liability. The hints provided give the gross annual value amounts, income from house property amounts, and tax payable in each case.

Uploaded by

Aashi Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Income from House Property Home Assignment Questions

Question 1:
Mr. X has let out one house property to Mr. Y @ Rs. 80,000 p.m. Fair rent Rs.90,000 p.m. Municipal
valuation Rs.80,000 p.m. and Standard rent of the house Rs.76,000 p.m. The house remained vacant for 2
months and there was unrealised rent for 3 months. Mr. X has paid municipal tax of Rs. 60,000 and interest
on loan for construction of house property is Rs. 69,000. Compute his Income from house property and tax
liability for A.Y. 2021-22.
Hint: GAV: Rs. 9,12,000, Income from house property: Rs. 5,27,400, Tax payable: Rs. 18,700

Question 2:
Ganesh has a property whose municipal valuation is Rs. 2,50,000 p.a. The fair rent is Rs. 2,00,000 p.a. and
the standard rent fixed by the Rent Control Act is Rs. 2,10,000 p.a. The property is let out for a rent of Rs.
20,000 p.m. however; the tenant vacated the property on 31.01.2021. Unrealised rent was Rs. 20,000 and all
conditions prescribed by Rule 4 are satisfied. He paid municipal taxes @ 8% of municipal valuation. Interest
on borrowed capital was Rs. 65,000 for the year. Compute the income from house property of Ganesh for
A.Y. 2021-22.
Hint: GAV: Rs. 1,80,000, Income from house property: Rs. 47,000

Question 3:
Aagam has a property whose municipal value is Rs. 1,30,000 p.a. the fair rent is Rs. 1,10,000 p.a. and the
standard rent fixed by the Rent Control Act is Rs. 1,20,000 p.a. the property was let out for a monthly rent of
Rs. 11,000. Unrealised rent was Rs. 11,000 and all the conditions prescribed by Rule 4 are satisfied. He paid
municipal taxes @ 10% of municipal valuation. Interest on borrowed capital was Rs. 40,000 for the year.
Compute the income from house property of Mrs. Aagam for AY 2021-22.
Hint: GAV: Rs. 1,21,000, Income from House Property: Rs. 35,600

Question 4:
Mr. John owns one residential house in Mumbai. The house is having two identical units. First unit of the
house is self-occupied by Mr. John and another unit is rented out for monthly rent of Rs. 8,000. The rented
unit was vacant for two months during the year. The particulars of the house for PY 2020-21 are as under:

Standard rent Rs. 1,62,000


Municipal value Rs. 1,90,000
Municipal tax (paid by Mr. John) 15% of municipal value
Light & water charges Rs. 6,000
Interest on borrowed capital Rs. 18,000
Lease money Rs. 14,400
Insurance charges Rs. 36,000
Repairs Rs. 12,000

Compute income from house property of Mr. John for AY 2021-22.


Hint: GAV of self-occupied unit: Nil, GAV of let out unit Rs. 80,000, Income from House Property: Rs.
28,025 (municipal taxes and interest should be apportioned between the two units)

Question 5:
Two brothers Satyapal & Tejpal are co-owners of a house property with equal share. The property was
constructed during the financial year 2016-2017. The property is situated at Bengaluru and consists of eight
identical units. During the financial year 2020-21, each co-owner occupied one unit for residence and the
balance six units were let-out for Rs. 12,000 p.m. per unit. The municipal value of the house property is Rs.
9,00,000 and the municipal taxes are 20% of municipal value, which were paid during the year. The other
expenses were as follows:
Repairs Rs. 40,000
Insurance premium paid Rs. 15,000
Interest payable on loan taken for construction of house Rs. 3,00,000

One of the let out units remained vacant for four months during the year. Satyapal could not occupy his unit
for six months as he was transferred to Kochi. He does not own any other house.
The other income of Mr. Satyapal & Mr. Tejpal are Rs. 2,90,000 and Rs. 1,80,000 respectively for the PY
2020-21. Compute income from house property and tax liability of both the brothers for AY 2021-22.
Hint: GAV of the let out units: Rs. 8,16,000, Income from co-owned let out houses Rs. 2,51,700
 Satyapal’s share in let-out units: Rs. 1,25,850 & income from house property: Rs. 88,350, Total
Income: Rs. 3,78,350, Tax payable: Nil
 Tejpal’s share in let-out units: Rs. 1,25,850 & income from house property: Rs. 88,350, Total
Income: Rs. 2,68,350, Tax payable: Nil

Question 6:
Mr. Satya owns a house property whose municipal value, fair rent and standard rent are Rs. 96,000, Rs.
1,26,000 and Rs. 1,08,000 (per annum), respectively. During the financial year 2020-21, one-third of the
house was let-out for monthly rent of Rs. 5,000 & the remaining two-third was self-occupied by him.
Municipal tax @ 11% of municipal value was paid during the year. The construction of the house began in
June 2013 and was completed on 31/5/2016. Mr. Satya took a loan of Rs. 1,00,000 on 1/7/2013 for the
construction of the property. He made monthly interest payments @12% p.a. Compute his income from
house property for AY 2021-22. Also compute his income from house property assuming that he has opted
for payment of tax u/s 115BAC for AY 2021-22.

Hint: GAV of let-out portion: Rs. 60,000, per-construction interest period: 33 months, total interest
deduction for the house: Rs. 18,600, Income from House Property: Rs. 20,936

Question 7:
Determine income from house property in the above question; presuming that the construction was
completed on 31/5/2015.
Hint: Income from House Property: Rs. 27,536

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