[Income From House Property, Problems and Solutions, Dibrugarh University 2009 to 2019 Question Papers, Solutions]
INCOME UNDER THE
HOUSE PROPERTY
SOLVED PRACTICAL PROBLEMS (2009 TO 2019)
Direct Tax Law’2009
(General)
Q.1. Sri Abhijit Saikia is the owner of a
house property. From the following particulars, compute the incomes from house
property for the assessment year 2008 – 2009:
a) Municipal valuation : 90000, Fair Rent : 110000, Standard rent fixed by the court : 100000
b) The house was let our w.e.f. 1-4-2007 for Rs. 8000 p.m. which was vacated by the tenant on 30-9-2007. Since then it remained vacant for two months. From 1-12-2007, it was again let-out for a rent of Rs. 11000 p.m.
c) Municipal tax paid: 20% of municipal valuation.
d) Insurance premium paid Rs. 3000
e) Interest on money borrowed for Construction of house property Rs. 30000.
Ans: Computation of Income from house property of Sri Abhijit Saikia for the assessment year 2008-09 (Previous Year 2007-08)
|
Particulars |
Amount |
|
1. Municipal Rental Value 2. Fair Rental Value 3. Standard Rental Value 4. Expected Rental Value (MRV or FRV
whichever is higher but limited upto SRV) 5. Actual Rent received or
receivable (8,000x6+11,000x4) 6. Gross Annual Value (higher of 4
or 5 but in case of vacancy only point
actual rent is considered) 7. Less: Municipal taxes paid (20%
of MRV) |
90,000 1,10,000 1,00,000 1,00,000 92,000 92,000 18,000 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
74,000 22,200 30,000 |
|
Income/ (Loss from house property) |
21,800 |
Direct Tax Law 2010
(General)
Q.2.
Following are the particulars of house properties of Mr. X for the previous
year 2008-09:
|
Particulars |
House A |
House B |
|
Construction
started on Construction
completed on Annual
rental value Municipal
valuation Municipal
tax Annual
repairing expenses Interest
on money borrowed for Renovation of the building Insurance
premium Ground
rent House
property was vacant for (months) Rent
collection charges |
31.3.1992 31.3.1993 30,000 25,000 2,500 2,000 1,200 200 150 3 1,000 |
10.2.1988 1.6.1992 12,000 12,000 1,200 2,000 - 175 100 - 600 |
Both the above houses were let out for residential purposes.
Insurance premium of house A and ground rent of house B are still outstanding.
Repair expenses of house A and municipal tax of house B was paid by the
tenants. Compute the income from house property.
Ans: Computation of Income from house
property of Mr. X for the assessment year 2009-10 (Previous Year 2008-09)
|
Particulars |
House
A |
House
B |
|
1. Municipal Rental Value 2. Actual Rent received or
receivable (30,000*9/12) 3. Gross Annual Value (Higher of 1
or 2 but in case of vacancy actual rent is GAV) 4. Less: Municipal taxes paid |
25,000 22,500 22,500 2,500 |
12,000 12,000 12,000 ------- |
|
5. Net Annual value (3-4) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
20,000 6,000 1,200 |
12,000 3,600 ------- |
|
Income/ (Loss from house property) |
12,800 |
8,400 |
Note:
1.
Repairing expenses, ground rent, rent collection charges and insurance premium
are not allowed as deduction in any case.
2.
Municipal taxes paid by the tenant is not allowed as deduction.
Direct Tax Law 2011
(General)
3.
Following are the particulars of house properties of Mr. X For the
assessment year 2010 – 2011
|
Particulars |
House – I |
House - II |
|
Fair rent Municipal Valuation Standard Rent Annual Rent Unrealized rent of the previous year 2009 – 2010 Vacant period Loss of account of vacancy Municipal taxes paid Repairs Insurance Land Revenue Ground rent Interest on capital borrowed |
3,50,000 3,60,000 3,00,000 6,00,000 10,000 2 months 1,00,000 40,000 5,000 20,000 25,000 66,000 ------- |
3,20,000 3,50,000 5,00,000 4,20,000 80,000 4 months 1,40,000 50,000 7,000 30,000 40,000 82,000 1,40,000 |
Determine the taxable income of Mr. X for the assessment year 2010 – 2011 assuming that he pays Rs. 70000 in the public provident fund.
Ans: Computation of Income from house property of Mr. X for the assessment year 2010-11 (Previous Year 2009-10)
|
Particulars |
House
– I |
House
- II |
|
1. Municipal Rental Value 2. Fair Rental Value 3. Standard Rental Value 4. Expected Rental Value (MRV or FRV
whichever is higher but limited upto SRV) 5. Actual Rent received or
receivable (Less loss due to vacancy and unrealised rent) 6. Gross Annual Value (higher of 4
or 5 but in case of vacancy only point
actual rent is considered) 7. Less: Municipal taxes paid |
3,60,000 3,50,000 3,00,000 3,00,000 4,90,000 4,90,000 40,000 |
3,50,000 3,20,000 5,00,000 3,20,000 2,00,000 2,00,000 50,000 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
4,50,000 1,35,000 ---------- |
1,50,000 45,000 1,40,000 |
|
Income/ (Loss from house property) |
3,15,000 |
(35,000) |
Total Income from House property = 3,15,000 – 35,000 = 2,80,000
Note:
1.
Repairing expenses, ground rent, rent collection charges and insurance premium
are not allowed as deduction in any case.
2.
Actual rent received or receivable is calculated after deducting loss due to
vacancy and unrealised rent during previous year.
Direct Tax Law 2012
(General)
Q.4. Mr. R has two house
properties situated in Delhi. Property A is self-occupied for the first 6
months from 1 – 4 – 2010
to 30 – 9 – 2010 and w.e.f. 1-10-2010 it was let out for 10000 p.m. Property B
is let out w.e.f.1-4-2010 at a rent of 12000 p.m. and w.e.f. 1-10-2010 it was
self occupied as R shifted his residence from property A to B. The other
details of the above two house properties are as under:
|
Particulars |
Property
A |
Property
B |
|
Municipal tax paid Insurance premium paid Interest on money borrowed for
purchase of house property |
30000 3000 35000 |
24000 4000 4000 |
Compute the income from house
property for the assessment year 2011 – 2012.
Ans: Computation of Income from house property of Mr. R for the assessment year 2011-12 (Previous Year 2010-11)
|
Particulars |
House
– A |
House
– B |
|
1. Expected Rental Value 2. Actual Rent received or
receivable (6 MONTHS) 3. Gross Annual Value (higher of 1
OR 2) 7. Less: Municipal taxes paid |
1,20,000 60,000 1,20,000 30,000 |
1,44,000 72,000 1,44,000 24,000 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
90,000 27,000 35,0000 |
1,20,000 36,000 4,000 |
|
Income/ (Loss from house property) |
28,000 |
80,000 |
Note:
1.
In the given question both the properties are partly let out and partly self
occupied. No benefit is allowed for partly let-out and partly self occupied
house property.
2.
In this question ERV is the 12 months rent of the house which both house
property can generate.
2014 (May)
COMMERCE (General)
5. (a) Following are the particulars of house
properties of Mr. X for the previous year 2012-2013:
|
Particular |
House-p |
House-R |
||
|
Fair rent |
3,50,000 |
3,20,000 |
||
|
Municipal valuation |
3,60,000 |
3,50,000 |
||
|
Standard rent |
3,00,000 |
5,00,000 |
||
|
Actual annual rent |
6,00,000 |
4,20,000 |
||
|
Unrealised rent(Of the previous year
2011-2012) |
10,000 |
80,000 |
||
|
Vacant period |
2 months |
4 months |
||
|
Loss on account of vacancy |
1,00,000 |
1,40,000 |
||
|
Municipal taxes paid |
40,000 |
50,000 |
||
|
Repairs |
5,000 |
7,000 |
||
|
Insurance |
20,000 |
30,000 |
||
|
Land revenue |
25,000 |
40,000 |
||
|
Ground rent |
66,000 |
82,000 |
||
|
Interest on borrowed capital |
_____ |
1,40,000 |
||
Compute the income from house
property. 14
Ans: Computation of Income from house property
of Mr. X for the Assessment year 2013-14 (Previous year 2012-2013)
|
Particulars |
House
– P |
House
- R |
|
1. Municipal Rental Value 2. Fair Rental Value 3. Standard Rental Value 4. Expected Rental Value (MRV or FRV
whichever is higher but limited upto SRV) 5. Actual Rent received or
receivable (Less loss due to vacancy and unrealised rent) 6. Gross Annual Value (higher of 4
or 5 but in case of vacancy only point
actual rent is considered) 7. Less: Municipal taxes paid |
3,60,000 3,50,000 3,00,000 3,00,000 4,90,000 4,90,000 40,000 |
3,50,000 3,20,000 5,00,000 3,20,000 2,00,000 2,00,000 50,000 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
4,50,000 1,35,000 ---------- |
1,50,000 45,000 1,40,000 |
|
Income/ (Loss from house property) |
3,15,000 |
(35,000) |
2015 (May)
COMMERCE (General)
Mr.
Gautom Bordoloi has given his premises on hire from 01/04/2010 to a company for
its office. He submits the following particulars:
14
|
Rs. |
|
|
Municipal rental value Fair rent Standard rent Actual rent Municipal taxes (p.a.) Interest on loan for purchase of house |
1,50,000 1,66,000 1,60,000 1,56,000 12,000 22,000 |
As
per agreement, rent increases to Rs. 14,000 p.m. from 01.10.2013. But amount of
increased rent is paid in May, 2014. Compute his income from premises for the
previous year 2014-15.
Computation of Income under the head house
property for the previous year 2014 - 15
|
Particulars |
Amount |
|
1. Municipal Rental Value 2. Fair Rental
Value 3. Standard Rental Value 4. Expected Rental Value (MRV or FRV
whichever is higher but limited upto SRV) 5. Actual Rent received or
receivable (Annual rent less unrealised rent less loss due to vacancy) 6. Gross Annual Value (higher of 5
or 6)[in case of vacancy only point 5 is considered) 7. Less: Municipal taxes paid |
1,50,000 1,66,000 1,60,000 1,60,000 1,68,000 1,68,000 12,000 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
1,56,000 46,800 22,000 |
|
Income/ (Loss from house property) Add: Deemed income from house
property (Increased rent of earlier year received during previous Year) |
87,200 6,000 |
|
Total Income from house property |
93,200 |
Note:
1. Here actual rent 14,000*12 = 1,68,000
2. Rent in the year in which house was let out
was Rs. 13,000 p.m. Rent during previous year after increase Rs. 14,000 p.m.
2016 (May)
COMMERCE (General) -
Course: 601
4. (a) Mr. Bimal owns a residential house property. It has two equal residential units, Unit – I and Unit – II. While Unit – I is self-occupied by Mr. Bimal for his residential purpose, Unit – II 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 @ 15% which is paid by Mr. Bimal. Other expenses for the previous year 2014 – 15 being repairs Rs. 800, insurance Rs. 1,500, interest on capital for constructing the property Rs. 63,000. Compute the house property income of Mr. Bimal for the assessment year 2015-16. 14
Ans: Computation of Income from house
property of Mr. Bimal for the assessment year 2015-16
|
Particulars |
Unit I (Self Occupied) |
Unit II (Let – Out) |
|
1. Municipal Rental Value 2. Fair Rental Value 3. Standard Rental Value 4. Expected Rental Value (MRV or FRV
whichever is higher but limited upto SRV) 5. Actual Rent received or
receivable (Annual rent less unrealised rent less loss due to vacancy) 6. Gross Annual Value (higher of 5
or 6)[in case of vacancy only point 5 is considered) 7. Less: Municipal taxes paid (15%
of MRV) |
|
65,000 70,000 62,500 62,500 60,000 60,000 9,750 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
Nil 31,500 |
50,250 15,075 31,500 |
|
Income/ (Loss from house property) Total Income from house property =
(31,500) + 3,675 = (27,825) |
(31,500) |
3,675 |
2017 (May) (General)
Course: 601 (Income
Tax)
5. (a) Mr. Y is the owner of a house property. From the following particulars, compute the Income from his house property for the Assessment Year, 2016 – 17: 14
|
Municipal valuation Fair rent Standard rent fixed by the court |
1,20,000 1,40,000 1,30,000 |
The house was let out w.e.f. 01.04.2015 for Rs. 10,000 per month which was vacated by the tenant on 30.09.2015. From 01.10.2015, it was again given to rent @ Rs. 12,000 per month.
Municipal tax paid Rs. 20,000 for the house.
Municipal tax due for the house 20% of municipal valuation
Repairs, electricity, etc., paid Rs. 7,500
Interest on money borrowed for construction of house property Rs. 30,000
Ans: Computation of Income from house property of Mr. Y for the assessment year 2016-17 (Previous Year 2015-16)
|
Particulars |
Amount |
|
1. Municipal Rental Value 2. Fair Rental Value 3. Standard Rental Value 4. Expected Rental Value (MRV or FRV
whichever is higher but limited upto SRV) 5. Actual Rent received or
receivable (10,000x6+12,000x6) 6. Gross Annual Value (higher of 4
or 5 but in case of vacancy only point
actual rent is considered) 7. Less: Municipal taxes paid (20%
of MRV but actual payment is deducted) |
1,20,000 1,40,000 1,30,000 1,30,000 1,32,000 1,32,000 20,000 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
1,12,000 33,600 30,000 |
|
Income/
(Loss from house property) |
48,400 |
(Old Course)
Full Marks: 80 Pass
Marks: 32
5. (a) Mr. P has two house properties situated in Guwahati. Property A is self-occupied for first six months from 01.04.2015 to 30.09.2015 and with effect from 01.10.2015 it was let out for Rs. 12,000 per month. Property B is let out w.e.f. 01.04.2015 at a rent of Rs. 15,000 per month and w.e.f. 01.10.2015 it was self-occupied as Mr. P shifted his residence from property A to B. The other details of the above two house properties are as under –
|
|
Property A |
Property B |
|
Municipal tax paid Insurance premium paid Interest on money borrowed for purchase of house property |
35,000 5,000 40,000 |
29,000 6,000 45,000 |
Compute the income from house property for the Assessment year, 2016 – 17. 14
Ans: Computation of Income from house property of Mr. P for the assessment year 2016-17 (Previous Year 2015-16)
|
Particulars |
House
– A |
House
– B |
|
1. Expected Rental Value 2. Actual Rent received or
receivable (6 MONTHS) 3. Gross Annual Value (higher of 1
OR 2) 7. Less: Municipal taxes paid |
1,44,000 72,000 1,44,000 35,000 |
1,80,000 90,000 1,80,000 29,000 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
1,09,000 32,700 40,000 |
1,51,000 45,300 45,000 |
|
Income/ (Loss from house property) |
36,300 |
60,700 |
Note:
1.
In the given question both the properties are partly let out and partly self
occupied. No benefit is allowed for partly let-out and partly self occupied
house property.
2.
In this question ERV is the 12 months rent of the house which both house
property can generate.
2018 (May)
COMMERCE (General)
Course: 601 (Income
Tax)
(b) Mr. A owns a house property in Cochin. It consists of three independent units and information about the property is given below:
|
Unit – 1: Unit – 2: Unit – 3: Municipal rental value Fair rental value Standard rent Actual rent Unrealized rent Repairs Insurance Interest on money borrowed for the construction of house
property Municipal taxes Date of completion of construction |
Own residence Let out Own business Rs. 1,20,000 p.a. Rs. 1,32,000 p.a. Rs. 1,08,000 p.a. Rs. 3,500 per month For three months Rs. 10,000 Rs. 2,000 Rs. 96,000 Rs. 14,400 01.11.2011 |
Calculate total income or loss under the head house property. 4+6+4=14
Ans: Computation of Income from house property
of Mr. A for the Assessment year 2013-14 (Previous year 2012-2013)
|
Particulars |
Unit
I Own Residence |
Unit
II (Let
out) |
|
1. Municipal Rental Value 2. Fair Rental Value 3. Standard Rental Value 4. Expected Rental Value (MRV or FRV
whichever is higher but limited upto SRV) 5. Actual Rent received or
receivable (Less unrealised rent) 6. Gross Annual Value (higher of 4
or 5) 7. Less: Municipal taxes paid (1/3) |
|
40,000 44,000 36,000 36,000 31,500 36,000 4,800 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
Nil 32,000 |
31,200 9,360 32,000 |
|
Income/ (Loss from house property) |
(32,000) |
(10,160) |
Note: 1. It is assumed that
all the three units are independent units and thus are being treated as
separate houses.
2. Interest on loan taken to
construct the house being used in own business shall be treated as business
expenditure.
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
(b) From the particulars given below, compute the income from house property which consists of two independent units having 1/3rd and 2/3rd area: 11
|
Date of completion of work Municipal rental value Fair rental value Self-occupied portion Let-out portion (From 1-4-2017 to 31-08-2017 @ Rs. 7,200
p.m. and self occupied from 01-09-2017 onwards) Municipal taxes (per annum) Fire insurance premium (per annum) Ground rent (per annum) Interest on loan |
01.11.2011 Rs. 96,000 Rs. 84,000 2/3 1/3 Rs. 6,000 Rs. 2,000 Rs. 4,000 Rs. 7,500 |
Ans: Computation of Income from house property:
|
Particulars |
Unit I (2/3 Self – occupied) |
Unit II (1/3 Let – Out) |
|
1. Municipal Rental Value 2. Fair Rental Value 3. Expected Rental Value (MRV or FRV
whichever is higher but limited upto SRV) 4. Actual Rent received or
receivable (5 months only) 5. Gross Annual Value (higher of 4
or 5) [in case of vacancy only point 4 is considered) 6. Less: Municipal taxes paid |
|
32,000 28,000 32,000 36,000 36,000 2,000 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
Nil 5,000 |
34,000 10,200 2,500 |
|
Income/ (Loss from house property) Total Income from house property =
(5,000) + 21,300 = (16,300) |
(5,000) |
21,300 |
Income Tax 2009
(Speciality)
(b)(i) Mr.S. Saikia had taken
a shop on rent at monthly rent of Rs.3000.He has sublet 25% of the area to Mr.
A. Das @Rs. 1,500 p.m. He incurred Rs. 8000 on repairs of the shop. Calculate
his income from subletting.
Ans:
Calculation of income from other source – Subletting
|
Rent received
@ Rs. 1,500 Less: Actual
expenses relating to sub-let portion a) Rent paid
(25% of 36,000) b) Repairs (25%
of Rs. 8,000) |
18,000 9,000 2,000 |
|
Income from subletting |
7,000 |
Income Tax 2010
(Speciality)
Find out the income from house property chargeable to tax for the Assessment year 2009-10 in the following cases:
|
Particulars |
X (Rs) |
Y (Rs) |
|
Municipal Value (MV) Fair rent (FR) Standard rent (SR) under
the rent control act Actual rent if property is
let out throughout the previous year Unrealized rent of previous
year 2008-09 Period when the property
remains vacant(In number of month Loss due to
vacancy Municipal taxes
------------------- Tax of the year 2008-09 Paid by X and Y during
2008-09 Paid by X and Y after March
31, 2009 Paid by tenants during
2008-09 |
1,
20,000 1,
30,000 1,
10,000 1,
26,000 10,500 (1) 10,500 18,000 17,000 1,000 -
|
1,
20,000 1,
30,000 1,
10,000 1,
26,000
Nil
Nil
Nil
18,000
8,000
1,000
9,000 |
Apart
from paying municipal tax, no other expenditure is incurred by X in respect of
the house property for generating income from property.
Ans: Computation of Income from house property of Mr. X for the assessment year 2009-10 (Previous Year 2008-09)
|
Particulars |
House
X |
House
Y |
|
1. Municipal Rental Value 2. Fair Rental Value 3. Standard Rental Value 4. Expected Rental Value (MRV or FRV
whichever is higher but limited upto SRV) 5. Actual Rent received or
receivable (Less loss due to vacancy and unrealised rent) 6. Gross Annual Value (higher of 4 or 5 but in case of vacancy only actual rent is considered) 7. Less: Municipal taxes paid |
1,20,000 1,30,000 1,10,000 1,10,000 1,05,000 1,05,000 17,000 |
1,20,000 1,30,000 1,10,000 1,10,000 1,26,000 1,26,000 8,000 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% |
88,000 26,400 |
1,18,000 35,400 |
|
Income/ (Loss from house property) |
61,600 |
82,600 |
Total Income from House property =
61,600+82,600
Note:
1. Municipal taxes paid by landlord during
previous year are allowed as deduction. If paid by tenant or not paid during
previous year, then municipal taxes cannot be allowed as deduction.
2014 (November)
COMMERCE (Speciality)
(b)
Mr. S owns a house property in New Delhi. From the particulars given below,
compute his income from house property for the assessment year 2015 – 16:
|
Municipal value – Rs. 2,00,000 Fair rent – Rs. 2,52,000 Standard rent – Rs. 2,40,000 Actual rent (per month) – Rs. 23,000 Municipal taxes – 20% of municipal value Municipal taxes paid during the year – 50%
of tax levied Expenses on repairs – Rs. 20,000 Insurance premium – Rs. 5,000 |
Mr.
S had borrowed a sum of Rs. 15,00,000 @ 15% p.a. on 01.07.2012 and the
construction of the property was completed on 31.01.2014.
Ans: Computation of Income from house
property of Mr. S for the assessment year 2015-16 (Previous Year 2014-15)
|
Particulars |
Amount |
|
1. Municipal Rental Value 2. Fair Rental Value 3. Standard Rental Value 4. Expected Rental Value (MRV or FRV
whichever is higher but limited upto SRV) 5. Actual Rent received or
receivable less unrealised rent 6. Gross Annual Value (higher of 4
or 5) 7. Less: Municipal taxes paid (20%
of MRV) |
2,00,000 2,52,000 2,40,000 2,40,000 2,76,000 2,76,000 20,000 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed
(2,25,000+33,750) Previous year
(2014-15) = (15,00,000*15%) 1/5 of
preconstruction period (1-7-12 to 31-03-2013) =
1/5(15,00,000*15%*9/12)=33,750 |
2,56,000 76,800 2,58,750 |
|
Income/
(Loss from house property) |
(79,550) |
2015 (November)
COMMERCE (Speciality)
Course: 504
(b)
Sri Ram has two house properties situated in Kolkata. House 1 is self-occupied
from the first 6 months, i.e., from 01-04-2013 to 30-09-2013 and w.e.f.
01-10-2013 it is let out for Rs. 25,000 per month. House II is let out w.e.f
01-04-2013 at a rent of Rs. 20,000 p.m. and w.e.f 01-10-2013 it was
self-occupied as Sri Ram shifted his residence from House I to House II. The
other details of the above two house properties are as follows:
|
House – I(Rs.) |
House – II
(Rs.) |
|
|
Municipal tax paid Insurance premium paid Interest on money borrowed for purchase of
house property |
35,000 5,000 45,000 |
30,000 6,000 50,000 |
Compute the income from house property of Sri
Ram for the assessment year 2014 –
15. 14
Ans: Computation of Income from house property of Mr. Ram for the assessment year 2014-15 (Previous Year 2013-14)
|
Particulars |
House
– A |
House
– B |
|
1. Expected Rental Value 2. Actual Rent received or
receivable (6 MONTHS) 3. Gross Annual Value (higher of 1
OR 2) 7. Less: Municipal taxes paid |
3,00,000 1,50,000 3,00,000 35,000 |
2,40,000 1,20,000 2,40,000 30,000 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
2,65,000 79,500 45,000 |
2,10,000 63,000 50,000 |
|
Income/ (Loss from house property) |
1,40,500 |
97,000 |
Note:
1.
In the given question both the properties are partly let out and partly self
occupied. No benefit is allowed for partly let-out and partly self occupied
house property.
2.
In this question ERV is the 12 months rent of the house which both house
property can generate.
2016
(November)
COMMERCE
(Speciality)
Course:
504
(Direct
Tax - I)
5. (a) JP owns a residential house property.
It has two equal residential units – Unit-I and Unit-II. While Unit-I is
self-occupied by JP for his residential purpose, Unit-II is let out (rent being
Rs. 6,000/- per month, rent of 2 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 JP. Other expense
for the previous year 2015-16 being repairs: Rs. 2,500/-, insurance: Rs.
6,000/-, interest on capital, borrowed during 1998, for constructing the
property: Rs. 63,000/-. Find the income from house property of JP for the assessment
year, 2016-17. 14
Ans: Computation of Income from house
property of Mr. JP for the assessment year 2015-16
|
Particulars |
Unit I (Self Occupied) |
Unit II (Let – Out) |
|
1. Municipal Rental Value 2. Fair Rental Value 3. Standard Rental Value 4. Expected Rental Value (MRV or FRV
whichever is higher but limited upto SRV) 5. Actual Rent received or
receivable (Annual rent less unrealised rent and loss due to vacancy) 6. Gross Annual Value (higher of 5
or 6)[in case of vacancy only point 5 is considered) 7. Less: Municipal taxes paid (12%
of MRV) |
|
65,000 70,000 62,500 62,500 60,000 60,000 7,800 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
Nil 31,500 |
52,200 15,660 31,500 |
|
Income/ (Loss from house property) Total Income from house property =
(31,500) + 5,040 = (26,460) |
(31,500) |
5,040 |
(Old
Course) Full Marks: 80 Pass Marks: 32
(b) From the information given below, find out
the income under the head ‘Income from House Property’ for the assessment year
2016-17:
|
Particulars |
House – I |
House – II |
|
Municipal
Valuation (MV) Fair
Rent (FR) Standard
Rent (SR) Annual
Rent Unrealized
Rent for the previous year, 2015-16 Interest
on borrowed capital (per annum) |
1,90,000 1,85,000 1,70,000 2,16,000 30,000 36,000 |
1,90,000 1,95,000 1,70,000 1,75,000 30,000 36,000 |
The above
stated properties are let out throughout the previous year 2015-16. Municipal
Tax (paid) is at the rate of 20%. 14
Ans: Computation of Income from house
property of Mr. X for the assessment year 2016-17 (Previous Year 2015-16)
|
Particulars |
Amount |
Amount |
|
1. Municipal Rental Value 2. Fair Rental Value 3. Standard Rental Value 4. Expected Rental Value (MRV or FRV
whichever is higher but limited upto SRV) 5. Actual Rent received or receivable
less unrealised rent 6. Gross Annual Value (higher of 4
or 5) 7. Less: Municipal taxes paid (20%
of MRV) |
1,90,000 1,85,000 1,70,000 1,70,000 1,86,000 1,86,000 38,000 |
1,90,000 1,95,000 1,70,000 1,70,000 1,45,000 1,70,000 38,000 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
1,48,000 44,400 36,000 |
1,32,000 39,600 36,000 |
|
Income/
(Loss from house property) |
67,600 |
56,400 |
2017
New Course
5. (a) Mr. Kalyan owns a resident house property. It has to equal residential units – unit 1 and unit 2. While unit 1 is self-occupied by Kalyan for his residential purpose, unit 2 is let out (rent being Rs. 8,000 p.m., rent of 2 months could not be recovered). Municipal value of the property is Rs. 1,40,000, standard rent is Rs. 1,30,000 and fair rent is Rs. 1,45,000. Municipal tax imposed @ 12% which is paid by Kalyan. Other expenses for the previous year 2016-17 being repairs Rs. 250, insurance Rs. 600, interest on capital (borrowed during 1997) for constructing the property Rs. 63,000. Find the income from house property of Kalyan for the assessment year 2017-18. 14
Ans: Computation of Income from house
property of Mr. Kalyan for the assessment year 2017-18
|
Particulars |
Unit I (Self Occupied) |
Unit II (Let – Out) |
|
1. Municipal Rental Value 2. Fair Rental Value 3. Standard Rental Value 4. Expected Rental Value (MRV or FRV
whichever is higher but limited upto SRV) 5. Actual Rent received or
receivable (Annual rent less unrealised rent) 6. Gross Annual Value (higher of 5
or 6)[in case of vacancy only point 5 is considered) 7. Less: Municipal taxes paid (12%
of MRV) |
|
70,000 72,500 65,000 65,000 80,000 80,000 8,400 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
Nil 31,500 |
71,600 21,480 31,500 |
|
Income/ (Loss from house property) Total Income from house property =
(31,500) + 18,620 = (12,880) |
(31,500) |
18,620 |
2017
Old Course
6. (a) From the information given below, find out the income under the head ‘Income from House Property’ for the assessment year, 2017-18:
|
|
House – I |
House – II |
|
Fair
Rent Annual
Rent (after deduction of unrealized rent in case of house II) Municipal
valuation (MV) Standard
rent (SR) Municipal
taxes paid Repairs
Insurance
Interest
on capital borrowed by mortgaging House – I (funds are used for construction
of House – II) Unrealised
rent 2016-17 |
70,000 73,000 71,000 NA 16,000 4,000 5,000 16,000 - |
1,72,000 1,74,000 1,75,000 NA 40,000 8,000 55,000 - 55,000 |
The above property is let out throughout the previous year 2016-17. 11
Ans: Computation of Income from house
property for the assessment year 2017-18
|
Particulars |
Unit I |
Unit II |
|
1. Municipal Rental Value 2. Fair Rental Value 3. Standard Rental Value 4. Expected Rental Value (MRV or FRV
whichever is higher but limited upto SRV) 5. Actual Rent received or
receivable (Annual rent less unrealised rent) 6. Gross Annual Value (higher of 5
or 6)[in case of vacancy only point 5 is considered) 7. Less: Municipal taxes paid |
71,000 70,000 NA 71,000 73,000 73,000 16,000 |
1,75,000 1,72,000 NA 1,75,000 1,74,000 1,75,000 40,000 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
57,000 17,100 -------- |
1,35,000 40,500 16,000 |
|
Income/ (Loss from house property) Total Income from house property =
39,900+78,500=1,18,400 |
39,900 |
78,500 |
Note: Interest is deducted from 2nd house income because loan amount is used for 2nd house.
5. (a) Mr. Swadhin owns resident house properties. Following are the particulars of two house properties owned by him:
|
|
House – I |
House – II |
|
Municipal
valuation (in Rs.) Fair
rent (in Rs.) Standard
rent (in Rs.) Actual
rent received (in Rs.) Self-occupied
Let
out Municipal
taxes: Due (in Rs.) Paid (in Rs.) Interest
on borrowed money (in Rs.) |
1,00,000 88,000 90,000 9,000 p.m. 01.04.2017 to 30.11.2017 01.12.2017 to 31.03.2018 6,000 3,000 10,000 |
92,000 96,000 1,08,000 10,000 p.m. 01.12.2017 to 31.03.2018 01.04.2017 to 30.11.2017 8,000 NIL 42,000 |
Loan taken to construct House – II is still outstanding. Loan was taken in 1998. Find out the income from house properties of Swadhin for the Assessment Year, 2018-19. 14
Ans: Computation of Income from house property of Mr. Swadhin for the assessment year 2018-19
|
Particulars |
House
– A |
House
– B |
|
1. Municipal Rental Value 2. Fair Rental Value 3. Standard Rental Value 4. Expected Rental Value (MRV or FRV
whichever is higher but limited upto SRV) 5. Actual Rent received or
receivable (Annual rent less unrealised rent) 6. Gross Annual Value (higher of 5
or 6)[in case of vacancy only point 5 is considered) 7. Less: Municipal taxes paid |
1,00,000 88,000 90,000 90,000 36,000 90,000 3,000 |
92,000 96,000 1,08,000 96,000 80,000 96,000 Nil |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
87,000 26,100 10,000 |
96,000 28,800 42,000 |
|
Income/ (Loss from house property) |
50,900 |
25,200 |
Note:
1.
In the given question both the properties are partly let out and partly self
occupied. No benefit is allowed for partly let-out and partly self occupied
house property.
2018
Old Course
6. (a) Mohan is a manager (finance) in Reliance Ltd., Mumbai and gets Rs. 34,000 per month as salary. He owns two houses one of which is let out to the employer-company which in turn provided the same to Mohan as rent-free accommodation. Determine the net income of Mohan for the Assessment Year, 2018-19 taking into account the following information relating property income: 11
|
|
House – I |
House – II |
|
Fair
rent (FR) (in Rs.) Annual
rent (in Rs.) Municipal
valuation (MV) (in Rs.) Standard
rent Municipal
taxes paid (in Rs.) Repairs
(in Rs.) Insurance
(in Rs.) Land
revenue (in Rs.) Ground
rent (in Rs.) Interest
on capital borrowed by mortgaging House – I (funds
are used for construction of House – II) (in Rs.) Unrealized
rent of the previous year, 2003 – 04 (in Rs.) Unrealized
rent of 2017-18 (in Rs.) Nature
of occupation Date
of completion of construction |
60,000 63,000 61,000 NA 14,000 3,500 3,000 7,500 4,000 18,000 - - Let out to Reliance Ltd. March 1999 |
1,82,000 1,84,000 1,85,000 NA 40,000 7,700 33,000 24,000 7,800 - 1,60,000 55,000 Let out to Rohan for Business April 2001 |
Ans: Computation of Income from house property
for the assessment year 2017-18
|
Particulars |
Unit I |
Unit II |
|
1. Municipal Rental Value 2. Fair Rental Value 3. Standard Rental Value 4. Expected Rental Value (MRV or FRV
whichever is higher but limited upto SRV) 5. Actual Rent received or receivable
(Annual rent less unrealised rent) 6. Gross Annual Value (higher of 5
or 6)[in case of vacancy only point 5 is considered) 7. Less: Municipal taxes paid |
61,000 60,000 NA 61,000 63,000 63,000 14,000 |
1,85,000 1,82,000 NA 1,85,000 1,29,000 1,85,000 40,000 |
|
8. Net Annual value (6-7) Less: Deduction under section. 24 (a) Standard Deduction @ 30% (b) Interest on money borrowed |
49,000 14,700 |
1,45,000 43,500 18,000 |
|
Income/ (Loss from house property) Total Income from house property =
34,300+83,500=1,17,800 |
34,300 |
83,500 |
Note: Interest is deducted from 2nd house income because loan amount is used for 2nd house.
Post a Comment
Kindly give your valuable feedback to improve this website.