Income From House Property | Problems and Solutions (2009 to 2019)

[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.


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