Income from House Property – CS Executive Tax Laws MCQsBy CACSMockTest / November 24, 2022 2 Income from House Property – CS Executive Tax Laws MCQs 1 / 34 When a person carries on the business of carrying goods for hire for the whole year with 5 self-owned and 3 leasehold goods vehicles (other than heavy goods vehicles), the presumptive income chargeable to tax u/s 44AE would be (A) ₹ 4,80,000 (B) ₹ 7,20,000 (C) ₹ 3,96,000 (D) ₹ 3,36,000 2 / 34 House owned by Suresh was sold on 1st January 2021 and till the date of sale, the house was on rent of ₹ 7,000 p.m. The other relevant details of this house are (i) municipal value ₹ 72,000 p.a. (ii) fair rent ₹ 66,000 p.a. and standard rent ₹ 60,000 p.a. The income chargeable under the head House Property in A.Y. 2021-22 of this house shall be: (A) ₹ 63,000 (B) ₹ 50,400 (C) ₹ 46,200 (D) ₹ 44,100 3 / 34 Santhanam purchased in October 2019 with financial assistance by way of a housing loan provided by PNB Housing Finance Ltd. a flat in Chennai to be used exclusively for his own residential purposes. Interest on the housing loan till March 2021 paid by him was ₹ 2,18,780. He wants to know the amount of deduction to be available to him in respect of interest so paid on the housing loan while computing his income or A. Y. 2021-22. (A) ₹ 30,000 (B) ₹ 2,18,780 (C) ₹ 1,50,000 (D) ₹ 2,00,000 4 / 34 What will be the Gross Annual Value (GAV) of a house owned by Ramesh covered by Rent Control Act remained let out during the year 2020-21 of which; (A) ₹ 3,60,000 (B) ₹ 3,20,000 (C) ₹ 3,50,000 (D) ₹ 3,00,000 5 / 34 Narendra engaged in retail trade let out his fully furnished house with lift, air conditioners, fridge, security staff, and gardener at a rent of ₹ 1,00,000 per month. The agreement did not provide for separate rent for various facilities but is a composite agreement. The amount received by him would be chargeable to tax under the head: (A) Other Sources (B) Business Income (C) Income from House Property (D) Capital Gains 6 / 34 Z an assessee incurs expenditure for acquisition of an asset in respect of which payment (or aggregate of payment made to a person in a day), otherwise than by an account payee cheque/draft or use of ECS through a bank, exceeds, such payment shall not be eligible for claiming the amount of depreciation on such asset. (A) ₹ 50,000 (B) ₹ 20,000 (C) ₹ 10,000 (D) ₹ 2,00,000 7 / 34 Find out from the following income derived from house property which is being exempt from Income Tax: (A) Income from the property of a trust for charitable or religious purposes (B) Income from the property of a housing society (C) Income from the property of a trade association (D) Income from the property of a sports association 8 / 34 Santhanam purchased in October 2020, a flat in Chennai, to be used for his own residential purposes with the financial assistance of a housing loan taken from PNB Housing Finance Ltd. He has paid interest on such loan till March 2021 of ₹ 1,78,780. The amount of interest paid on such loan allowed u/s 24 is: (A) ₹ 1,25,000 (B) ₹ 1,78,780 (C) ₹ 1,50,000 (D) None of the above 9 / 34 Mr. Zen owns a flat in Mumbai which was let out by him in the previous year 2020-2021 on rent of ₹ 20,000 p.m. up to December 2020 and for ₹ 30,000 p.m. Thereafter, the annual municipal value is ₹ 3,00,000, Fair Rent is ₹ 2,50,000 and Standard Rent is ₹ 2,90,000. The Gross Annual Value of the flat shall be taken as: (A) ₹ 2,70,000 (B) ₹ 3,00,000 (C) ₹ 2,50,000 (D) ₹ 2,90,000 10 / 34 Mr. Bala transferred his left out a residential property to his wife by way of gift settlement. During the financial year 2020-21, she earned a rental income of ₹ 30,000 per month. She made a fixed deposit in a bank out of such rental income and earned interest income during the year of ₹ 21,000. The total amount of income liable for clubbing in the hands of Mr. Bala for the assessment year 2020-21 is: (A) Nil (B) ₹ 21,000 (C) ₹ 2,52,000 (D) ₹ 2,73,000 11 / 34 When a house property is let out for a monthly rent of ₹ 25,000 during the financial year 2020-21 and maintenance expenses by way of salary to sweeper and watchman is ₹ 6,000 (A) ₹ 2,28,000 (B) ₹ 2,10,000 (C) ₹ 3,00,000 (D) ₹ 2,50,000 12 / 34 A borrowed ₹ 5,00,000 @ 1296 p.a. on 1.4.2016 for construction of house property which was completed on 15.3.2020. The amount is still unpaid. The deduction of interest for previous year 2020-2021 shall be: (A) ₹ 60,000 (B) ₹ 96,000 (C) ₹ 1,80,000 (D) ₹ 2,40,000 13 / 34 Mr. Ahmed acquired a property in April 2020 for self-residential use. The loan interest payable to the State Bank of India for the financial year 2020-21 amounts to ₹ 2,10,000. The amount eligible for deduction under section 24 is: (A) ₹ 30,000 (B) ₹ 2,00,000 (C) ₹ 2,10,000 (D) ₹ 1,50,000 14 / 34 The municipal value of a property is ₹ 2,10,000. Fair rent is ₹ 1,90,000 standard rent is ₹ 1,80,000 and the actual rent is * 2,40,000. The gross annual value of the property would be – (A) ₹ 1,80,000 (B) ₹ 1,90,000 (C) ₹ 2,40,000 (D) ₹ 2,10,000 15 / 34 The construction of a house was completed on 31st January 2021. The owner of the house took a loan of ₹ 20,00,000 @ 696 p.a. on 1st May 2020 In this case the deduction allowable for the previous year 2020-21 towards interest on borrowings is: (A) ₹ 22,000 (B) ₹ 24,000 (C) ₹ 1,10,000 (D) None of the above 16 / 34 Ms. Padmaja let out a property for ₹ 20,000 per month during the year 2020-21. The municipal tax on the let-out property was enhanced retrospectively. Hence, she paid * 60,000 as municipal tax which included arrears of municipal tax of ₹ 45,000. Her income from house property is: (A) ₹ 80,000 (B) ₹ 1,57,500 (C) ₹ 1,26,000 (D) ₹ 36,500 17 / 34 Ramesh let out his house on 1.4.2020 on rent of ₹ 15,000 p.m. The fair rent and the municipal value of the house are ₹ 13,500 p.m. and ₹ 16,000 p.m. respectively. Municipal taxes paid for the year were ₹ 12,000. Income from house property for the AY 2021-22 will be: (A) ₹ 1,26,000 (B) ₹ 1,76,000 (C) ₹ 1,05,000 (D) None of the above 18 / 34 When a share of each co-owner in house property is not definite, the income from such property shall be: (A) Taxed equally (B) Exempt from tax (C) Taxed as an association of persons (D) Taxed as the body of individuals 19 / 34 When a house property is let-out throughout the year for a monthly rent of ₹ 22,000 and municipal tax paid for the current year is ₹ 24,000 and for the earlier year paid now is ₹ 16,000, the income from house property would be: (A) ₹ 1,68,000 (B) ₹ 1,56,800 (C) ₹ 1,84,800 (D) ₹ 2,24,000 20 / 34 Rohit owns a house property in Delhi which he wants to give on rent. He seeks your help to determine the reasonable expected rent when monthly municipal value is ₹ 20,000, fair rent ₹ 25,000, and standard rent ₹ 22,000. The reasonable expected rent will be computed with reference to the following amount p.m. (A) ₹ 22,000 (B) ₹ 20,000 (C) ₹ 25,000 (D) None of the above 21 / 34 Suresh owns two house properties. The first property was used half for running his business and the other half was let out at ₹ 4,000 p.m. The second property was wholly used as a residence by Suresh. Municipal values of the two properties were the same at ₹ 72,000 each p.a. and local taxes @ 1096. Suresh’s income from house property for the PY 2020-21 will be: (A) ₹ 33,600 (B) ₹ 31,080 (C) ₹ 28,560 (D) ₹ 62,160 22 / 34 Composite rent of let-out house property is taxable as: (A) Profits and gains from business or Profession (B) Income from other sources (C) Income from house property (D) Either (A) or (B) above depending upon certain conditions 23 / 34 Sajal is the owner of a house property covered under the Rent Control Act. Municipal value ₹ 30,000, actual rent ₹ 25,000, fair rent ₹ 36,000 and standard rent is ₹ 28,000. The gross annual value of the house property will be: (A) ₹ 30,000 (B) ₹ 25,000 (C) ₹ 36,000 (D) ₹ 28,000 24 / 34 Mr. Ahmed acquired a property in April 2020 for self-residential use. The loan interest payable to the State Bank of India for the financial year 2020-21 amounts to ₹ 2,10,000. The amount eligible for deduction under section 24 is: (A) ₹ 30,000 (B) ₹ 2,00,000 (C) ₹ 2,10,000 (D) ₹ 1,50,000 25 / 34 The municipal value of a property is ₹ 2,10,000. Fair rent is ₹ 1,90,000 standard rent is ₹ 1,80,000 and the actual rent is * 2,40,000. The gross annual value of the property would be – (A) ₹ 1,80,000 (B) ₹ 1,90,000 (C) ₹ 2,40,000 (D) ₹ 2,10,000 26 / 34 The construction of a house was completed on 31st January 2021. The owner of the house took a loan of ₹ 20,00,000 @ 696 p.a. on 1st May 2020 In this case the deduction allowable for the previous year 2020-21 towards interest on borrowings is: (A) ₹ 22,000 (B) ₹ 24,000 (C) ₹ 1,10,000 (D) None of the above 27 / 34 Ms. Padmaja let out a property for ₹ 20,000 per month during the year 2020-21. The municipal tax on the let-out property was enhanced retrospectively. Hence, she paid * 60,000 as municipal tax which included arrears of municipal tax of ₹ 45,000. Her income from house property is: (A) ₹ 80,000 (B) ₹ 1,57,500 (C) ₹ 1,26,000 (D) ₹ 36,500 28 / 34 Ramesh let out his house on 1.4.2020 on rent of ₹ 15,000 p.m. The fair rent and the municipal value of the house are ₹ 13,500 p.m. and ₹ 16,000 p.m. respectively. Municipal taxes paid for the year were ₹ 12,000. Income from house property for the AY 2021-22 will be: (A) ₹ 1,26,000 (B) ₹ 1,76,000 (C) ₹ 1,05,000 (D) None of the above 29 / 34 When a share of each co-owner in house property is not definite, the income from such property shall be: (A) Taxed equally (B) Exempt from tax (C) Taxed as an association of persons (D) Taxed as the body of individuals 30 / 34 When a house property is let-out throughout the year for a monthly rent of ₹ 22,000 and municipal tax paid for the current year is ₹ 24,000 and for the earlier year paid now is ₹ 16,000, the income from house property would be: (A) ₹ 1,68,000 (B) ₹ 1,56,800 (C) ₹ 1,84,800 (D) ₹ 2,24,000 31 / 34 Rohit owns a house property in Delhi which he wants to give on rent. He seeks your help to determine the reasonable expected rent when monthly municipal value is ₹ 20,000, fair rent ₹ 25,000, and standard rent ₹ 22,000. The reasonable expected rent will be computed with reference to the following amount p.m. (A) ₹ 22,000 (B) ₹ 20,000 (C) ₹ 25,000 (D) None of the above 32 / 34 Suresh owns two house properties. The first property was used half for running his business and the other half was let out at ₹ 4,000 p.m. The second property was wholly used as a residence by Suresh. Municipal values of the two properties were the same at ₹ 72,000 each p.a. and local taxes @ 1096. Suresh’s income from house property for the PY 2020-21 will be: (A) ₹ 33,600 (B) ₹ 31,080 (C) ₹ 28,560 (D) ₹ 62,160 33 / 34 Composite rent of let-out house property is taxable as: (A) Profits and gains from business or Profession (B) Income from other sources (C) Income from house property (D) Either (A) or (B) above depending upon certain conditions 34 / 34 Sajal is the owner of a house property covered under the Rent Control Act. Municipal value ₹ 30,000, actual rent ₹ 25,000, fair rent ₹ 36,000 and standard rent is ₹ 28,000. The gross annual value of the house property will be: (A) ₹ 30,000 (B) ₹ 25,000 (C) ₹ 36,000 (D) ₹ 28,000 Your score is LinkedIn Facebook Twitter VKontakte Related