Income from House Property MCQ
MCQ on Income from House Property
Income Tax MCQs Multiple Choice Questions with Answers
(2022 – 23)
In this
page you get Income from House Property MCQs with answers which are asked
in various exams of Mumbai University, Dibrugarh University, Gauhati University,
Kolkata University and Assam University.
Also, these questions are useful for B. Com exams of various universities covered under CBCS pattern.
Also, these Income from House Property MCQ are also useful for NTA Net Commerce Exam, CMA, CA, CS and other competitive exams.
Introduction to Annual Value of House Property
Annual Value (Section 23)
The Annual Value of a house property is the inherent capacity of the property to earn income and it has been defined as the amount for which the property may reasonably be expected to be let out from year to year. It is not necessary that the property should actually be let out. It is also not necessary that the reasonable return from property should be equal to the actual rent realized when the property is, in fact, let out.
Choose the Correct Options
1. The charging section of the Income under the
head income from house property is:
a) Section 15
b) Section 17
c) Section 22
d) Section 45
Ans: c) Section
22
2. What are the conditions to be fulfilled for
charging of income under the head income from house property is:
a) There must
be property consisting of any building or land appurtenant thereto
b) The assessee
must be owner or deemed owner
c) Property is
not used by the assessee for the purpose of any business or profession
d) All of the
above
Ans: d) All of
the above
3. Properties exempted from tax under the head
income from house property (Sec. 10)
1) Income from
a farm house.
2) Annual value
of one palace in the occupation of an ex-ruler.
3) Property
income of a local authority.
4) Property
income of an approved scientific research association.
5) Property
income of an educational institution and hospital.
6) Property
income of a registered trade union.
7) Income from
property held for charitable purposes.
8) Property
income of a political party.
9) Income from
property used for own business or profession.
10) Annual
value of two self occupied properties.
Ans: All of the
above
4. The ceiling limit of deduction u/s 24 (b) in
respect of Interest of Loan taken on 01.06.2014 for construction of a
self-occupied house is:
a) Rs.
1,50,000/-
b) Rs.
30,000/-
c) Rs. 45,000/-
d) No
limit.
Ans: a) Rs. 1,50,000/-
5. In
case of rental house property only such municipal tax is deducted which is:
a) Paid during previous year by landlord
b) Paid during previous year by tenant
c) Total municipal taxes due during the
year
d) None of the above
Ans: a) Paid during previous year by
landlord
6. Where an assessee uses his property for carrying
on any business or profession, no income is chargeable to tax under the head:
a) Income from
Salaries.
b) Income
from House Property.
c) Income
from Other Sources.
d) Capital Gains
Ans: b) Income
from House Property.
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7. Under the head income from house property the basis
of charge is:
a) Rent received
from house property
b) Annual value of
house property
c) Net profit from
house property
d) None of the
above
Ans: b) Annual value
of house property
8. Which of the following incomes from house property
is not exempted from tax:
a) Agricultural
house property
b) House used for
business or profession
c) House held as
stock in trade
d) House let out
for commercial purpose
Ans: d) House let
out for commercial purpose
9. Income
from sub-letting of house property is taxable under the head:
a) Income from
Salaries.
b) Income
from House Property.
c) Income
from Other Sources.
d) Capital
Gains
Ans: c) Income
from Other Sources.
10. If annual value of the house property let out
is negative then the deduction under section 24 is allowed only for:
a) All
deductions
b) Standard
deductions @ 30%
c) Interest on
money borrowed
d) None of the
above
Ans: c)
Interest on money borrowed
11. Unrealised rent is deducted from:
a) Gross annual
value
b) Net annual
value
c) Income from
house property
d) Municipal
taxes
Ans: a) Gross
annual value
12. An assessee has borrowed money for purchase of
a house and interest is payable outside India. Such interest shall be:
a) Allowed as
deduction
b) Not to be
allowed as deduction
c) Allowed as
deduction if the tax is deducted at source
Ans: c) Allowed
as deduction if the tax is deducted at source
13. In Which of the following cases transferee are
deemed owners?
a) Transfer of
property without any adequate consideration to spouse without any agreement to
live apart.
b) Transfer of
property to a minor child.
c) Holder of an
impartible estate
d) All of the
above
Ans: d) All of
the above
14. Local taxes levied on house property includes:
a) House tax
b) Fire and
water tax
c) Conservancy
tax
d) Education
and sanitation cess
e) Sewerage tax
f) All of the
above
Ans: f) All of
the above
(All local taxes levied by local authority in
respect of the house property shall be allowed as deduction from gross annual
value)
15. Deduction under sec. 24 includes:
a) Standard
deduction @ 30%
b) Interest on
loan taken for purchase or construction of house
c) Interest on
loan taken for repairs or renovation of house
d) All of the
above
Ans: d) All of
the above
Also Read: Income Tax Chapterwise MCQs (2022 - 2023)
1. 700+ Income Tax MCQs 2022-23 [Free PDF], Income Tax Laws and Practice MCQs
2. 50+ MCQ on Residential Status, Income Tax MCQs 2022 - 23 [Free PDF]
3. 100+ MCQs on Income From Salary, Income Tax MCQs 2022 - 23 [Free PDF]
4. 50 Income from House Property MCQ, Income Tax MCQs 2022 - 23 [Free PDF]
6. 50 MCQ on Capital Gains, Income Tax MCQs 2022 - 23 [Free PDF]
8. 25+ Income Tax Deductions MCQs (80C to 80 U), Income Tax MCQs 2022 – 23 [Free PDF]
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Income from House Property MCQ
MCQ on Income from House Property
Income Tax MCQs Multiple Choice Questions with Answers
(2022 – 23)
Fill in the blanks
1. Loss
under the head ‘house property income’ can be carried forward for 8 years.
2. Deduction
for interest on loan taken for construction of self-occupied house after
01.04.1999 is allowed up to actual amount or Rs. 2,
00,000 whichever is less.
3. As per
Section 24, Standard deduction allowable on Let out house property is 30 percent of NAV.
4. Municipal tax
is deducted from Gross Annual Value
of the house property.
5. House Property Income = Annual Value of Building – Specified Deductions u/s 24.
6. Housing
property income of a local authority is exempt for
taxation under income from house property.
7. Under the head income from house property
the basis of charge is house property.
8. Loss under the head house property cannot
be set off against casual income.
9. Municipal taxes to be deducted from Gross
Annual Value should be paid during previous year by Landlord.
10. It is the annual value of the property (not the
actual rent received or receivable) considered for income from house property.
11. Rent from vacant land does not attract tax under the
head.
12. House property used
for OWN BUSINESS is not considered under this
head.
13. Assessee should be the
OWNER or deemed owner of the property.
(Need not be the owner of the land e.g. Owner of apartment.)
14. Pre-construction
period means interest payable up to 31st March preceding to the
year of completion.
15. Pre-construction
period interest is deductible only in the first five installments
starting from 1st April of the year of completion.
16. Arrears of rent shall
be deemed to be income of the previous year in which such rent is received
after deducting 30% of such amount.
17. In case the property is owned by
co-owners and it is self-occupied by all co-owners. The annual value of such
house property shall be nil.
18. In case of
transfer of property to married daughter by a father, income is not taxable in the hands of father.
19. Any tax
levied by local authority in respect of the house property shall be allowed as deduction.
20. Fines,
penalty and interest on interest charged due to delayed payment of interest is not allowed as deduction.
Income from House Property MCQ
MCQ on Income from House Property
Income Tax MCQs Multiple Choice Questions with Answers
(2022 – 23)
State Whether the following Statements Are True or False:
1. Income from
subletting house will be chargeable under the head ‘income from other
sources’. TRUE
2. House or
property used by the political party is exempted from House Property
Tax. True
3. Municipal
tax due is allowed as deduction for computation of income from house
property. False
4. Actual rent
is the rent which is actually received by the owner of the house from the
tenant. True
5. The annual
value of a house property is to be determined according to the provisions of
Section 32 of the Income-tax
Act. False,
sec. 23
6. Income is
taxable under the head Income from House Property only if the assessee is not
the owner of a house property. False
7. A has two
house properties. Both are self-occupied. The annual value of both houses will
be nil. True
8. When a property is occupied by the owner himself that property is
called let-out house property. False,
Self occupied
9. Ground rent is taxable under the head income from house property. False
10. When a
property is used by the owner himself for the purpose of business, annual value
of such property is taxable as income from house property. False, Not taxable under the head income
from house property
11. House property either
rented to someone for commercial (including business) or for residential or for
self occupation. True
12. There must be a
building. Building includes a large stadium with or without roof, rent from
swimming pool, rent from godown, music hall, dance hall lecture hall, other
public auditorium. True
13. Residential building
normally have roof. Non-residential building need not have roof. True
14. Building area includes
adjacent area like approach roads, garage, garden, cattle shed etc. True
15. If property is
transferred for inadequate consideration either to spouse or minor children the
income from house property is calculated in the hands of the transferee (wife
or minor children) but will be included in the hands of transferor under
section 64(1). True
16. If part payment is
made after making a contract for sale for immovable property, and such house is
occupied by the buyer it amounts to transfer even though the property is not
registered (section 53A of the Transfer of property act). True
17. If house property is rented
to own employees where renting is not their business such income is under
business, not under house property. True
18. If house property is
rented to non-employees or activity which is not subservient and incidental to
one’s own business then such income is from house property. True
19. Rent from bank, post
office, police station, central excise office, railway staff quarters which is
for carrying on its business efficiently and smoothly, such income comes under
income from business. True
20. If house property is
foreign country, annual property will be computed as if property is situated in
India. Therefore, municipal tax paid during the previous year in foreign
country is also deductible. True
21. Municipal taxes paid
in the previous year by landlord is deducted while calculating net annual
value.
22. Interest payable is
deductible under sec. 24 whether or not paid during the year. True
23. Interest payable
outside India without deducting tax at source is not allowed as deduction under
section 24. True
24. Income from house
property cannot be negative. False
25. Gross annual value of
the house property cannot exceed standard rent. False
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