UNIT III – INCOME FROM HOUSE PROPERTY

WORKSHEET 3

SECTION A ( 10 X 3 = 30 Marks)

1. What do you mean by standard rent?

2. What is unrealized rent?
3. What is Annual Value ?
4. Mr.S hired a house of 5 rooms at 5,000/- per month. He paid 6,000/- as Municipal Taxes and spent
5,000/ on repair of the house. He had sub-let 2 rooms at the rate
5. Calculate Gross Annual Value (GAV) from the particulars given below

Rs
MRV (Municipal Rental Value) 80,000 pa
FRV (Fair Rental Value) 85,000 p.a.
Standard Rent 60,000 р.а.
Actual Rent 60,000 р.а.
6. Mr. Ram owns a property in Chennai. (Municipal Value ₹ 1,60,000; Fair rental Value ₹1,80,000;
Standard rent 1,50,000). The House is let out up to September 30, 2022(Monthly rent being 15,000),
From October 1, 2022, the property is self-occupied for own residential purposes. Find out the Gross
Annual Value for the Assessment Year 2023-24.
7. Mr. Surya owns a property in Delhi. Municipal Value 60,000; fair rental value 65,000; Standard rent
59,500; Actual rent₹ 72,000; Loss due to vacancy 6,000.

Explain and Calculate Gross Annual Value from the above information.

8. Mr. S took a loan of Rs 400000 on 1-4-2020 at 20%pa to construct a house. The constraction of the
house was completed on 1-11-2022. Compute the amount of interest deductible in computing IFHP, if
the house is let out and loan is not yet repaid during 2023-24
9. Mr.R. has a house at pune where Rent Control Act is applicable. Its MRV is 1,08,000 p.a. and FRV is
₹1,20,000 p.a. Standard rent is 1,02,000. Compute Expected Rental Value (ERV).
10. Discuss the term treatment on house loan while calculating ‘Income from House Property’

SECTION B ( 5 X 8 = 40 Marks)

11. What are the different types of rental value?

 12. An assessee took a loan of 6,00,000 on 31.1.1999 from a Bank for construction of a house.The loan
carries interest @ 15% per annum. The construction is completed on 30.12.2001. The entire loan is still
outstanding.
Compute the interest allowable for the assessment year 2023-24. If the house is:
(a) Self occupied
(b) Deemed to be Let
(c) Let out

13. Calculate ARV from the particulars given below

MRV 60,000 per annum, Actual Rent 7,000/- per month; FRV 66,000/- per annum:
Standard rent Rs. 69,000/- per annum.
(a)House was vacant for full year during the previous year 2023-24.
(b) House was vacant for two months during the previous year 2023-24.
(c)Actual Rent of the house is 4,000/- per month and was vacant for two months.

14.Compute the income from house property from the information given below:
Municipal Rental Value Rs18,000
Rent received during the year Rs24,000
Municipal Taxes (50% paid by tenant) Rs1,800 per annum
Expenses incurred on repairs
(a)By owner Rs3,000
(b) By tenant Rs3,000
Collection charges Rs1,000
Due date for completion of house 1.6.1998
15. Mr. Z Owns a house property which is lets out for residence. He submits the following details to
compute the gross annual value of the property.
Municipal Value 1,40,000
Fair rent 1,45,000
Standard rent under rent control act 1,42,000
Annual rent if property is lets out throughout the previous year 1,68,000
Unrealised rent 14,000
Less due to vacancy 7,000
16. Sri Srinivasan took a loan of ₹ 4,00,000 on 1.4.2019 at 20% pa to construct a house. The construction
of the house was completed on 1.11.2023. Compute the amount of interest deductible in computing
income from house property, assume the house is let out.
17. From the particulars given below compute income from house property which consist of two

independent units having 1/3rd and 2/3rd area.

Date of completion: 1-11-2018

Municipal rent: Rs.96,000

Fair rent: Rs.84, 000

Self-occupied portion: 2/3rd area

Let out: 1/3rd area from 1-4-2023 to 31-4-2023 at Rs. 7,200 per month And

self- occupied from 1-9-2018 onwards

Municipal tax: Rs.6, 000 per annum

Fire insurance premium: Rs.2, 000 per annum

Ground rent: Rs. 4,000 per annum

Interest on loan: Rs. 7,500

18.From the following particulars of Let out house property of Mr.A

Municipal valuation 3,50,000

Fair rent 3,80,000

Standard rent 3,20,000

Actual rent 4,20,000

Unrealized rent 35,000

Vacancy 2 months

Municipal Taxes

Actually Paid 35,000

Due 10,000

Repairs 8,000

Insurance Premium 6,000

 Other expenses 10,000

Interest on borrowing 60,000

Determine the taxable income under the IFHP.

19. Mr. Raghav owns a residential property. It has two equal residential unit Unit-1 and Unit-II. While
unit-l is self-occupied by Raghav for his residentia purpose, unit-ll is let out (rent being 6,000 per
month, rent of two months could not be recovered). The municipal value of the property is 1,30,00
Standard rent 1,25,000 and Fair Rent is 1,40,000. Municipal Tax is imposel at 15% percent which is
paid by Raghav. Other expenses for the previous year 2022-23 being repairs ₹800, Insurance ₹1,500,
Interest on capital (borrowed during 1998) for constructing the property ₹63,000 pa. Find the house
property income for the assessment year 2023-2024.

SECTION C ( 2 x 15 = 30 Marks )

20. From the particulars given below compute income from house property for the assessment year 2023-
24.
Date of Completion 1-11-92
Municipal Rental Value 36,000
Fair Rental value 30,000
Self occupied 2/3 portion
Let out 13 portion, from 1-4-2022 to 31-8-2022 at 1000p.a
And self-occupied from 1-9-2022 onward
Municipal taxes 3,000 pa
Fire Insurance Premium 2,400 pa
Ground Rent 4,200 р.а.
Interest on Loan 7,500 p.a

21. Mr. A owns the house properties about which the detailed information is given below
House I House II
Annual MRV 24,000 38,000
Annual FRV 22,000 34,000
Annual Standard Rent 20,000 40,000
Annual Rent 30,000 36,000
Interest on loan taken for construction 28,000 p.a 22,000 p.a
 Vacancy period 2months 3 months
Municipal Taxes 10% of MRV 2,400
Additional Information:
(a) Loan was taken for construction of House I by mortgaging the House II.
(b) Assessee receives salary of 12,000/- per month.
(c) Both the units are let out.
Calculate his Gross Total Income for the year ending 31.3.2024.

22. Mr. X constructed one house in 2023. 75% of the property is let out and 25% is occupied for his
residence. The let-out portion is also self-occupied for one month. The particulars are:
Municipal value of full house ₹ 5,000 p.a
Annual Rent of 75% portion 4,000 p.a
Municipal taxes 500 p.a
Ground Rent 100 p.a
Repairs 200 p.a
Fire Insurance premium 150 p.a
Collection charges 60 p.a.
Interest on loan taken for construction 600 p.a
His income from all Other Sources amounts to ₹ 10,000.
Estimate his Income from House Property.
 Income from
house property
3 marks

1)MR. Ram owns a property in Chennai. (Municipal Value ₹ 1,60,000; Fair rental Value
₹1,80,000; Standard rent ₹1,50,000). The House is let out upto September 30, 2020 (Monthly
rent being 15,000). From October 1, 2023, the property is self-occupied for its own residential
purposes. Find out the Gross Annual Value for the Assessment Year 2024-25. (Qn 2022)

2)Mr. Surya owns a property in Delhi. Municipal Value₹60,000; fair rental value 65,000;
Standard rent 59,500; Actual rent 72,000; Loss due to vacancy 6,000.

Explain and Calculate Gross Annual Value from the above information.(Qn 2022)

3)From the Following Particulars, Compute the Gross Annual Value. (Qn 2017)

● Municipal Value 60,000

● Fair Rental Value 65,000
● Standard Rent 59,500
● Actual Rent 72,000

4) Explain Annual Value.(Qn 2017)

5)Mr.R. has a house in pune where Rent Control Act is applicable. Its MRV is 1,08,000 p.a. and
FRV is ₹1,20,000 p.a. Standard rent is ₹1,02,000. Compute Expected Rental Value
(ERV).(Qn2022)

6)X a Resident of Ajmer, receives 48,000 as basic salary during the previous year 2023-24. In
addition, he gets 4,800 as dearness allowance forming part of basic salary, 7% commission on
sales made by him(sales made by X during the relevant previous year is 86,000) and₹ 6,000 as
HRA. He however pays₹5,800-house rest. Determine the quantum of HRA exempt from tax.
(Qn 2017)

7)Arul owns a residential house. It comprises two equal residential units-Unit 1 and Unit II. While
Unit I is self-occupied by Arul for his residential purpose, Unit II is let (rent being ₹ 5,000
p.m)municipal value of the property is 1,20,000, Standard Rent is 1,30,000 and Fair Rent is
1,50,000. Find gross annual value for the Assessment Year 2024-25. (Qn 2017)

8 marks

1)Sri Srinivasan took a loan of 4,00,000 on 1.4.2020 at 20% p.a. to construct a house. The
construction of the house was completed on 1.11.2022. Compute the amount of interest
deductible in computing income from house property, assume the house is let out. (Qn 2022)

2)Mr. Z Owns a house property which is lets out for residence. He submits the following details
to compute gross annual value of the property.
Municipal Value 1,40,000

Fair rent 1,45,000

Standard rent under rent control act₹ 1,42,000

Annual rent if property is lets out throughout the previous year 1,68,000

Unrealised rent 14,000

Loss due to vacancy ₹7,000. ( Qn 2022)

3) Mr 'B' has let out a house property for a monthly rent of 20,000. It's municipal valuation is ₹
2,50,000 per annum. Its fair rental value is 2,40,000 p.a. It has been out from 01-10-1991. Mr 'B'
paid 10,000 as municipal taxes. Municipal taxes paid by tenants are ₹ 5,000, ₹3,000 municipal
taxes are due but not paid. Out of 10,000 paid by B 2,000 relates to subsequent two years. Find
out the net annual value of the house property for AY2024-25. (Qn 2017)

14 marks

1) Mr. X constructed one house in 2015, 75% of the property is let out and 25% is occupied for
his residence. The let out portion is also self-occupied for one month. The particulars are:

Municipal value of full house₹ 5,000 p.a

Annual Rent of 75% portion 4,000 p.a

Municipal taxes 500 p.a

Ground Rent 100 p.a

Repairs 200 p.a

Fire Insurance premium 150 p.a

Collection charges₹ 60 p.a.

Interest on loan taken for construction 600 p.a

His income from all Other Sources amounts to ₹10,000.

Estimate his Income from House Property (Qn 2017)

2)Mr. X owns a house in Delhi. During the previous year 2023-24, 2/3 portion of the house was
self-occupied for a full year and 1/3rd portion was let out for residential purposes from 1.4.2023
to 31.08.2023 on a rent of 1,000 pm. From 1.9.2023 this portion was also used for own
residence. Municipal valuation of the house is 36,000. Fair Rental Value 30,000. He incurred the
following expenditure in respect of the house property. Municipal taxes 3,000 p.a.; Fire
Insurance Premium 2,400 p.a.; Land Revenue 4,200 p.a.; were paid during the year. A loan was
taken for the construction of the house which was completed on 1.11.93. Nothing was repaid on
the loan account so far. Interest on loan ₹7,500 p.a. Estimate his income from house property
for the assessment year 2024-25. ( Qn 2022)