Income from House Property – CS Executive Tax Laws MCQs

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

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:

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.

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;

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:

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.

Find out from the following income derived from house property which is being exempt from Income Tax:

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:

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:

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:

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 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:

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:

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 –

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:

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:

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:

When a share of each co-owner in house property is not definite, the income from such property shall be:

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:

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.

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:

Composite rent of let-out house property is taxable as:

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:

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:

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 –

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:

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:

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:

When a share of each co-owner in house property is not definite, the income from such property shall be:

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:

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.

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:

Composite rent of let-out house property is taxable as:

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: