St.

Josephs Evening College (Autonomous)

Income Tax Question Bank (Income !om "ouse #!ope!t$)
1. Mr. Lokesh had taken a shop on rent at monthly rent of Rs. 2,000. He has sub-let 25% of the
area to Mr. Mahendran @ Rs. 1,000 p.m. He n!urred Rs. ",000 on repars of the shop.
#al!ulate hs n!ome from sub-lettn$.
2. Mr. Man%unath hred a house of 5 rooms at Rs. 5000 pm. He pad Rs. &000 as Mun!pal ta'es
and spent Rs. 5000 on the repar of the house. He has sub-let 2 rooms at the rate of Rs. (000
pm to hs frend Mr. )akrya. #ompute n!ome from sublettn$.
(. Mr. *aresh has !onstru!ted a multstory buldn$ at +elh !onsstn$ of "0 flats. ,a!h flat s
let out @ 1,000 p.m. -he mun!pal authortes ha.e f'ed the rental .alue of ths property as
Rs. ",50,000 p.a. -he o/ner bears the follo/n$ e'penses0
Rs.
12 Lft mantenan!e
12 3ump mantenan!e
12 4alary of 5ardener and 6at!hman
1.2 4/mmn$ pool e'penses
12,000
7,000
(,&00
8,000
#ompute the 9nnual Rental :alue for the property.
". ;rom the f$ures $.en belo/ !al!ulate the ,'pe!ted Rental :alue n ea!h !ase separately0
Rental :alue #ase 9 #ase < #ase #
Rs. Rs. Rs.
MR: (0,000 (0,000 (0,000
;R< (&,000 (&,000 (&,000
4tandard Rent *.9. ((,000 "2,000
5. #al!ulate 9R< from the part!ulars $.en belo/0
MR: Rs. &0,000 p.a ;R: Rs. &&,000 p.a.
9. =f 9!tual Rent s Rs. >2,000 p.a. and 4tandard Rent s Rs. &8,000 p.a. or
<. =f 9!tual Rent s Rs. &(,000 p.a. and 4tandard Rent s Rs. &8,000 p.a.
&. #al!ulate 5ross 9nnual :alue from follo/n$ nformaton0
House ? 9 House ? <
MR: 70,000 70,000
;R: 1,00,000 1,00,000
4tandard Rent >0,000 1,20,000
9!tual Rent 1,20,000 80,000
Mun!pal -a'es 7,000 7,0001only 50% pad2
=t s assumed that both the houses /ere let out throu$hout the year and there /as also no
unreal@ed rent.
>. #al!ulate 9R: from the part!ulars $.en belo/0
MR: Rs. &0,000 p.a. 9!tual Rent Rs. >,000 p.m.
;R: Rs. &&,000 p.a. 4tandard Rent Rs. &8,000 p.a.
a2 House /as .a!ant for full year durn$ the pre.ous year 2008-10
b2 House /as .a!ant for t/o months durn$ the pre.ous year 2008-10
!2 9!tual Rent of the house s Rs. ",000 p.m. and /as .a!ant for t/o months.
7. #al!ulate 9R: from the part!ulars $.en belo/0
9!tual Rent Rs. >,000 p.m. MR: Rs. &0,000 p.a.
;R: Rs. &&,000 p.a. 4tandard Rent Rs. &8,000 p.a.
+urn$ pre.ous year 200>-07 assessee !ould not real@e rent for t/o months.
8. #al!ulate 9R: from the part!ulars $.en belo/0
9!tual Rent Rs. &,000 p.m. MR: Rs. &0,000 p.a.
;R: Rs. &&,000 p.a. 4tandard Rent Rs. &8,000 p.a.
+urn$ the pre.ous year 2008-10 assessee !ould not realse rent for t/o months.
10.
1a2 #al!ulate 9R: from the part!ular $.e belo/0
9!tual Rent Rs. >,000 p.m. MR: Rs. &0,000 p.a.
;R: Rs. &&,000 p.a. 4tandard Rent Rs. &8,000 p.a.
9ssessee !ould not real@e rent for t/o months and house also remaned .a!ant for 2 months
durn$ the pre.ous year 2008-10.
1b2 6hat dfferen!e t /ould make f e.ery thn$ else remann$ the same but a!tual rent re!e.ed
s Rs. &,000 p.m.
11. #ompute 9R: from part!ulars $.en belo/0
MR: Rs. &0,000 p.a. ;R: Rs. &&,000 p.a.
4tandard Rent Rs. &(,000 p.a. Real Rent Rs. &,000 p.m.
+ate of !ompleton (1-05-2008 +ate of lettn$ 01-07-2008
12. Mss 3oo%a 3.4 s the o/ner of a house /h!h s let-out at a rent of Rs. 500 p.m. -he
mun!pal ta'es are eAual to 10% of the rent re!e.ed.
#ompute the annual .alue of the house, f
12 -he mun!pal ta'es are pad by Mss 3oo%a, and
12 B of the mun!pal ta'es are borne by the tenant.
1(. ;rom the part!ulars $.en belo/ !al!ulate net annual .alue for the pre.ous year endn$ on
(1-(-200>.
Rs.
9. Mun!pal Rental .alue C+ate of !ompleton s 1->-2008D
9!tual Rent re!e.ed
-a'es le.ed by lo!al authorty and pad by o/ner
1a2 House -a'
1b2 4antaton #ess
&0,000 p.a.
>2,000 p.a.
&,000 p.a.
1,000 p.a.
<. +ate of !ompleton 1-&-2008
Rent Re!e.ed @ Rs. ",000 p.m.
Mun!pal Rental :alue
Mun!pal -a'es are 10% of MR:
He pad 50% of ta'es durn$ the year 2008-10
"0,000
(&,000 p.a.
1". Mr. 3rabhesh o/ns a house at #hand$arh. -hs house property s used n follo/n$ manner0
1E(
rd
of the house s used for o/n busness,
1E(
rd
of the house s used for o/n resden!e,
1E(
rd
of the house s used by a tenant to /hom t s let out @ Rs. (,000 p.m. and t /as self-
o!!uped for one month durn$ the pre.ous year. -he mun!pal rental .alue of the house s
Rs. 8&,000 p.a. on /h!h mun!palty le.es 10% ta'. -hese ta'es are pad by the o!!upants.
#ompute net annual .alue of the house property for the pre.ous year 2008-10 f each po!tion
is an in%epen%ent unit.
15. Mr. Ra%esh M started the !onstru!ton of hs house on 1-&-1888 and for ths he took a loan of
Rs. 2,00,000 @ 1(.5% from <ank. He took another loan of Rs. >,00,000 @ 1(% p.a. on 1-
"-2005 to !omplete the house. -he !onstru!ton /as !ompleted on (0-11-2008 and /as self-
o!!uped from 1-12-2008. #ompute hs n!ome under the head house property for the
assessment year 2010-11.
#harles Lasrado 4F @ 4F,#
2
1&. =n the pre.ous year 2008-10, these /as unreal@ed rent of Rs. (0,000 but the o/ner !ould
!lam a dedu!ton of Rs. 20,000 only as the n!ome from house property /as only Rs. 20,000.
;nd out the deemed n!ome from house property uEs 259 n ea!h !ase separately f the
assessee re!o.ers0
#ase =. Rs. 7,000
#ase ==. Rs. 15,000
#ase ===. Rs. (0,000
1>. #al!ulate the ta'able amount of unreal@ed rent re!o.ered n follo/n$ !ase0
3EG 2008-10 3EG 2010-11
Mr. H Mr. G Mr. H Mr. G
MR:
;R:
4tandard Rent
9nnual Rent
Inreal@ed Rent
Inreal@ed Rent Re!o.ered
Rs.
1,20,000
1,(&,000
1,(0,000
1,&0,000
20,000
*=L
Rs.
1,20,000
1,(&,000
1,25,000
1,(5,000
20,000
*=L
Rs.
1,20,000
1,(&,000
1,(0,000
1,&0,000
*=L
17,000
Rs.
1,20,000
1,(&,000
1,25,000
1,(5,000
*=L
17,000
17. Mr. 4anath Jumar has $.en hs premses on hre from 1-"-200> to a !ompany for ts off!e.
He submts the follo/n$ part!ulars.
Rs. Rs.
MR:
;R:
4tandard Rent
9!tual Rent
1,50,000
1,&&,000
1,&0,000
1,5&,000
Mun!pal ta'es
=nterest on loan for pur!hase
of house
12,000 p.a.
22,000
9s per a$reement rent n!reases to Rs. 1",000 p.m. from 1-10-2007. <ut amount of n!reased
rent s pad n May 2008. #ompute hs n!ome for the pre.ous year 2008-10.
18. 4haln, 4ndhu and 4o/parnka are three frends o/nn$ eAually a house property !onsstn$
of s' dent!al unts. =t /as !onstru!ted on 1
st
Fuly 200&. Kne unt s self-o!!uped by ea!h
one of them for ther resden!e. -he remann$ three unts are let out on a monthly rent of Rs.
>,500 per unt. -he mun!pal .alue of house property s Rs.5,00,000 and mun!pal ta' s Rs.
1,25,000 1Rs. 25,000 due2.
-he other e'penses /ere as follo/s0
Rs.
12 #olle!ton and repar !har$es >,500
12 =nsuran!e premum 15,000
12 =nterest on loan taken for !onstru!ton of houseL 1,&2,500
Kne of the let out unts remaned .a!ant for t/o months. Mss 4ndhu !ould not o!!upy her
unt as she /as transferred to some other !ty. 4he does not o/n any other house property.
-he other ta'able n!omes of 4haln, 4ndhu and 4o/parnka are Rs. 1,50,000, Rs. 2,00,000
and Rs. (,00,000 respe!t.ely. #ompute the ta'able n!ome under the head n!ome from
house property for the assessment year 2010-11.
20. MR: of the resdental house s Rs. 2",000 and a!tual rent s Rs. 2,500 p.m. +urn$ the
pre.ous year 2008-10 house /as .a!ant for t/o months. -he Mun!pal -a'es are @ 10% of
MR:. +urn$ the year o/ner pad Rs. (0,000 as arrears of Mun!pal -a'es. =nterest on loan
taken for the !onstru!ton of house payable to hs employer s Rs. 1&,000. #ompute n!ome
from house property.
#harles Lasrado 4F @ 4F,#
(
21. #ompute the total n!ome of Mr. 4anthosh from the part!ulars $.en belo/ for the pre.ous
year 2008-10 and 2010-110
#!evious $ea! (&''()*') #!evious $ea! (&'*')**)
Rs. Rs.
House 3roperty
4elf o!!uped house
=nterest on Loan
Let out house
Loss due to nterest and other e'penses
=n!ome from other sour!es
5,000
(&,000
1M211,000
5,000
*=L
1M2 11,000
22. Mr. 4enthl o/ns a house property at #o!hn. =t !onssts of ( ndependent unts and
nformaton about the property s $.en belo/0
I*=- 10 K/n resden!e
I*=- 2 0 Let out
I*=- (0 K/n busness
Rs.
MR: 1,20,000 p.a.
;R: 1,(2,000 p.a.
4tandard Rent 1,07,000 p.a.
Rent (,500 p.a
Inreal@ed rent for three months
Repars 10,000
=nsuran!e 2,000
=nterest on money borro/ed for pur!hase of property 8&,000
Mun!pal -a'es 1","00
+ate of #ompleton 1-11-200"
2(. ;nd out the ta'able n!ome from property of 4r 4an%ay Jumar 4n$h of 9mrtsar from the
follo/n$ part!ulars0
He o/ns three houses, the mun!pal .aluaton of /h!h s Rs. 12,000, Rs. 2",000 and Rs.
21,000 respe!t.ely. -he follo/n$ are further detals about three houses0
12 -he frst house bult n 2000, has been let out on a monthly rent of Rs. 2,500. -he e'penses
n !onne!ton /th ths house /ereL =nterest on Mort$a$e Rs. 1,200L Land Re.enue Rs. 50L
;re =nsuran!e 3remum Rs. >50L =nterest on loan for the !onstru!ton of the house Rs. (,&00L
Mun-!pal -a'es Rs. 1,200. -he house remaned .a!ant for t/o months. Inreal@ed rent of
the !urrent year amounts to Rs. 5,000. -he 9ssessn$ Kff!er has been satsfed about ths
unreal@ed rent.
12-he se!ond house /as bult n 200( and s used for o/nerNs resdental purposes. =n
!onne!ton /th ths house Rs. (00 /ere spent on repars and Rs. 100 /ere pad as ;re
=nsuran!e 3remum. -he house remaned .a!ant for three months as the o/ner had to stay n
<ombay n a rented house n !onne!ton /th hs professon.
12 -he !onstru!ton of thrd house /as !ompleted on (0
th
Fune 200" and from 1
st
Fuly 200& t
/as let out for resdental purposes on a rent of Rs. 1,500 p.m. Mun!pal -a' Rs. 2,100 and
nterest on loan Rs. 1",000 /ere pad durn$ the year 2008-10.
Hs n!ome form other sour!es amounted to Rs. >2,000.
2". Mr. 4yed 4adath s the o/ner of " houses. Kne house s let to a tenant for Rs. (,000 p.a. -he
se!ond house, the mun!pal .aluaton of /h!h s Rs. ",500 p.a. s n hs o/n o!!upaton.
-he thrd house remaned .a!ant throu$hout the /hole year as t /as not n rentable !ondton.
-he fourth house, the mun!pal .aluaton of /h!h s Rs. &,000 s used by 9 for hs busness.
#harles Lasrado 4F @ 4F,#
"
Hs e'penses n respe!t of these houses are as follo/s0 Rs.
=nterest on loan taken to repar the resdental house "00
;re =nsuran!e premum for 1
st
, 2
nd
and "
th
house 1,"10
#olle!ton !har$es (50
5round rent n respe!t of 2
nd
house 200
-he frst house, /h!h s let, remaned .a!ant for t/o months.
#al!ulate Mr. 4adathNs n!ome from house property.
25. Mr. 3rem Jumar s the o/ner of a house property n Janpur. =t has been let out for Rs.
80,000. -he ta' payable by the o/ner !omes to Rs. 7,"00 on mun!pal .aluaton of Rs.
7","00 but the landlord has taken an a$reement from the tenant statn$ that the tenant /ould
pay ta' dre!t to the mun!palty. -he landlord, ho/e.er, bears the follo/n$ e'penses on
tenantNs amentes0
Rs.
6ater !har$es 1as per a$reement2
Lft Mantenan!e
4alary of 5ardener
L$htn$ of 4tars
-he landlord !lams the follo/n$ dedu!tons0
Repars
Land Re.enue
#olle!ton #har$es
1,000
1,000
1,200
700
(0,000
1,000
2,000
Le$al !har$es n!urred on pur!hase of land on /h!h house property s stuated Rs. 2",000.
#ompute the ta'able n!ome from house property.
2&. 9 house /as !ompleted on 9prl 1, 2008 and follo/n$ nformaton s a.alable about ths
house0
Rs.
Mun!pal :alue of the House
;ar Rental :alue of the House
9!tual Rent
Mun!pal -a'es
(&,000 p.a.
(5,000 p.a.
",000 p.m.
&,000 p.a.
Let out for the perod 1-"-2008 to (1-12-2008 and self o!!uped from 1-1-2010 on/ards.
;re =nsuran!e 3remum
Land Re.enue
=nterest on Loan for the perod
1a2 1-"-2008 to (1-(-2008
1b2 1-"-2008 to (1-(-2010
Rs.
(,&00
&,000
"5,000
15,000
#al!ulate n!ome from house property for the pre.ous year endn$ on (1-(-2010.
2>. ;rom the part!ulars $.en belo/ !ompute n!ome from house property /h!h !onssts of t/o
ndependent unts ha.n$ 1E(
rd
and 2E(
rd
area0
+ate of #ompleton
Mun!pal Rental :alue
;ar Rental :alue
4elf-o!!uped
Let-out
Mun!pal -a'es
;re =nsuran!e 3remum
5round Rent
=nterest on Loan
1-11-200"
Rs. 8&,000
Rs. 7",000
2E( porton
1E( porton from 1-"-2008 to (1-7-2008 @
Rs. >,200 p.m. and self-o!!uped
from 1-8-2008 on/ards
Rs. &,000 p.a.
Rs. 2,000 p.a.
Rs. ",000 p.a.
Rs. >,500
#harles Lasrado 4F @ 4F,#
5
27. Mr. Ra%esh o/ns a resdental house property. =t has t/o eAual resdental unts-Int ? = and
Int ? ==. 6hle Int ? = s self o!!uped by Ra%esh for hs resdental purposeL Int ? == s let
out 1rent ben$s Rs. &,000 per month, rent of t/o months !ould not be re!o.ered2, Mun!pal
.alue of the property s Rs. 1,(0,000, standard rent s Rs. 1,25,000 and far rent s Rs.
1,"0,000. Mun!pal -a' s mposed @ 15 per !ent /h!h s pad by Ra%esh. Kther e'penses
for the pre.ous year 200>-2007 ben$ repars Rs. 700, nsuran!e Rs. 1,500, nterest on !aptal
1borro/ed durn$ 18872 for !onstru!tn$ the property0 Rs. &(,000.
;nd the house property n!ome of Ra%esh for the assessment year 2010-11.
28. Mr. 4unl Jumar o/ns a house at +elh. +urn$ the pre.ous year 2008-10, (E"
th
porton of
the house s o!!uped for self-resden!e for full year and 1E"
th
porton s let out for resdental
purposes from 1-"-2008 to (1-12-2008 on a rent of Rs. >00 p.m. ;rom 1-1-2010 ths porton
/as used for o/n resden!e by hm. Mun!pal .aluaton of the entre house s Rs. 20,000 and
far rental .alue s Rs. 2",000, ,'penses n!urred n respe!t of the house property /ere0
Mun!pal -a'es Rs. &,000L Repars Rs. 2,000L ;re =nsuran!e premum Rs. (,500L Land
Re.enue Rs. ",000 and 5round Rent Rs. 200. -hese e'penses /ere pad durn$ the year.
9 loan of Rs. &0,000 /as taken on 1-"-200& @ 15% p.a. for the !onstru!ton of the house
/h!h /as !ompleted on (1-1-2005. Loan s stll outstandn$. ;nd out hs n!ome from
house property for the assessment year 2010-11.
(0. ;ollo/n$ are the part!ulars of t/o house propertes o/ned by Mss. 4/ath.
House ? = House ? ==
Mun!pal :aluaton
;ar Rent
4tandard Rent
9!tual Rent re!e.ed
4elf o!!uped
Let out
Mun!pal -a'es due
3ad
=nterest on borro/ed Money
8&,000
77,000
80,000
8,000 p.m.
1-"-08 ? (0-11-08
1-12-08 ? (1-(-10
&,000
(,000
10,000
80,000
8&,000
1,07,000
10,000 p.m.
1-12-08 ? (1-(-10
1-"-08 ? (0-11-08
7,000
*=L
"2,000
Loan taken to !onstru!t House ? == s stll outstandn$. Loan /as taken n 200&.
;nd out Mss 4/athNs n!ome from house property.
(1. Mr. -a%%amul s the o/ner of a house /h!h !onssts of ( ndependent unts. 5round floor
/h!h s eAual to "0% s self o!!uped and 1
st
floor s also eAual to "0% and s let-out. 4e!ond
floor /h!h s eAual to 20% s also let out.
Kther nformatons re$ardn$ the house are as follo/s0
;ar Rental :alue
Mun!pal .aluaton
4tandard Rent
Mun!pal -a'es
Repars e'penses
5round rent
9!tual rent re!e.ed0
;rst ;loor unt
4e!ond ;loor unt
80,000 p.a.
1,00,000 p.a.
70,000 p.a.
10% of MR:
10,000 p.a.
5,000 p.a.
5,000 p.m.
2,000 p.m.
;rst floor unt remaned .a!ant for 2 months. Mr. -a%%amul started the !onstru!ton of the
house n 200&. He borro/ed Rs. 5 la!s @ 1"% on 1->-200& for the !ompleton of the house
and the house /as fnally !ompleted on 15
th
Fuly, 2007. Mr. -a%%amul returned loan of Rs. 1
La! on (1
st
Mar!h, 2008. +etermne Mr. -a%%amulNs house property n!ome for the assessment
year 2010-11.
#harles Lasrado 4F @ 4F,#
&
(2. Mr. -auAueer of Jolkata submts the follo/n$ part!ulars of hs let out resdental house.
Rent re!e.ed for house as /ell as for .arous amentes pro.ded to the tenant0
12 ;or house
12 ;or lft mantenan!e
12 ;or se!urty !har$es
1.2 ;or ele!tr!ty O /ater
Mun!pal :aluaton
;ar Rental :alue
4tandard Rent
Mun!pal ta'es 150% to be pad by tenant ? 10% of MR:2
Repars e'penses met by tenant
=nsuran!e premum pad by Mr. -auAueer
9nnual #har$e mposed by #ourt n fa.our of hs mother
=nterest on loan taken n 200& for the reno.aton of the house
&,000 p.m.
500 p.m.
500 p.m.
1,000 p.m.
>0,000 p.a.
5&,000 p.a.
&0,000 p.a.
5,000
1,000
10,000 p.a.
20,000 p.a.
=n 200"-05 a tenant defaulter n the payment of rent to the tune of Rs. (&,000 but Mr. -auAueer
!ould !lam a dedu!ton of Rs. 2&,000 only n the pre.ous year 200&-0>. 9fter a lon$
lt$aton Mr. -auAueer !ould re!o.er from the tenant only Rs. 20,000 durn$ the pre.ous year
2008-10
Mr. -auAueer spent Rs. 1&,000 only to pro.de the abo.e mentoned amentes to the tenant.
#ompute Mr. -auAueerNs n!ome from house property and any other n!ome for the
9ssessment Gear 2010-11.
((. Mr. -hulas Ram o/ns t/o houses at #henna. #ompute hs n!ome for house property for the
assessment year 2010-11
;.R.:.
9!tual Rent
Mun!pal Rental :alue
4tandard Rent
Mun!pal -a'
9!tual repars e'penses
5round Rent
#olle!ton !har$es
=nterest on loan
:a!an!y on loan
:a!an!y perod
<onafde unreal@ed rent of !urrent year.
(&,000 p.a.
",000 p.m.
"0,000 p.a.
(7,000 p.a.
10% of MR: M 2%
of Mun!pal
-a' as se/era$e !ess
",000
2,000
500
12,000
( months
------
1,20,000 p.a.
12,000 p.m.
1,(0,000 p.a.
*.9.
10%% of MR: M
2% of M. -a'es as
se/era$e !ess
12,000
2,500
1,200
"7,000
(&,000
(". Mr. Maryappan o/ns t/o self-o!!uped houses n 9mbala. ;rom the follo/n$ nformaton
fnd out that /h!h house he should !hoose as self-o!!upedP
4tandard Rent f'ed under Rent #ontrol 9!t.
;ar Rent
Mun!pal :aluaton
Mun!pal -a'es 13ad2
Mun!pal -a'es 1+ue2
5round Rent 13ad2
House 9
Rs.
(&,000
"2,000
2",000
1,200
1,200
1,000
House <
Rs.
5&,000
&2,000
"",000
1,200
1,200
500
+ate of !ompleton of these houses /as (1-1-200>. Mr. Maryappan had taken a loan of Rs.
2,50,000 @ 10% p.a. for !onstru!ton of House 9 on 1-&-2005 and he repad Rs. 2,00,000 on
1-10-2008.
#harles Lasrado 4F @ 4F,#
>
(5. Mr. Martn Foseph !ompleted a house on 1-"-2008 %ontly /th hs /fe and n.ested Rs (0,00,000.
House !onssts of t/o eAual unts. Kne unt s self-o!!uped by Mr. Martn and hs famly and
other unt 1o/ned by Mrs. Martn2 s let out at Rs. 10,000 p.m. -he mun!pal .alue of the house
s Rs. 2,1&,000 p.a. on /h!h mun!palty le.es 10% ta' and 2% of ta' as sur!har$e. 9 loan of
Rs. &,00,000 /as taken on 1-11-200& @ 8% p.a. #ompute the n!ome from house property for the
assessment year 2010-11 f0
1a2 6hole of !aptal s suppled by Mr. Martn and loan s also taken on hs name.
1b2 50% of !aptal s suppled by Mr. Martn and 50% by Mrs. Martn and loan s also taken
%ontly n same proporton and Mrs. Martn s herself a ta' payee.
(&. Mr. R. 4. *arula s the o/ner of a house for the fnan!al year 2008-10. =ts mun!pal .aluaton
has been f'ed at Rs. 15,000, Mun!pal ta'es le.ed amounted to Rs. (,000 but he pad Rs. 1,500.
He has o!!uped the house for hs o/n resden!e, but as he /as a/ay from =nda for " months
durn$ Fuly to K!tober 2008, he has let t out on rent at Rs. 1&00 per month. He has n!urred the
follo/n$ e'penses n respe!t of ths house.
12 <rokera$e to property dealer Rs. 700
12 =nterest on loan taken for the !onstru!ton of the house Rs. &,000
-he tenant has not pad hm one half month rent. -he !ondtons for dedu!ton of unreal@ed rent
satsfed.
(>. 3 ds!loses the follo/n$ part!ulars of the property o/ned by hm durn$ the 3G 2008-10
3art!ulars House 4elf-
K!!uped Rs.
;lat allotted by H<
so!ety let out Rs.
4hops and $odo/ns
let out Rs.
Mun!pal :alue
;ar Rent
Mun!pal ta'es payable
1a2 3ad by 3
1b2 3ad by tenant
9nnual rent
,'penses n!urred by 30
Mantenan!e !har$es
Repars
#olle!ton !har$es
,le!tr!ty blls pad
=nsuran!e premum
5round rent
+epre!aton
5,00,000
",00,000
&0,000
&0,000
-
-
-
-
-
20,000
5,000
1,000
-
2,00,000
2,50,000
70,000
(0,000
50,000
(,&0,000
-
12,000
-
2,000
-
2,000
2,000
-
",00,000
5,00,000
70,000
-
70,000
>,00,000
-
-
2,&0,000
&,000
-
&,000
&,000
20,000
Kther =nformaton0
1. He has taken the loan on 1 Fuly 200> to pur!hase the house n self-o!!upan!y. Ho/e.er, he !ould
pur!hase the house on 1 May 2007. He repad Rs. &,(0,000 on 1 Fuly 2008. -hs n!ludes a !har$e of Rs.
1,20,000 on a!!ount of nterest from the date of borro/n$.
2. -he flat has been pur!hased under ,M= s!heme of the 5u%arat 9partment #ooperat.e House <uldn$
4o!ety Ltd. He has to pay 120 ,M= of Rs. 10,000 ea!h, /h!h n!ludes 50% !har$e on a!!ount of
nterest. He has defaulted n payment of last 20 ,M=. -o repay the outstandn$ ,M= and penal of Rs.
20,000 he borro/ed Rs. 2,20,000 on 1 K!tober 200& @ 15% p.a.
-he flat remaned .a!ant for 1.5 months and rent of Q month !ould not be real@ed.
#ondtons of Rule " ha.e been satsfed.
4hops and $odo/ns are held as sto!k-n-trade. Ho/e.er, tll a sutable buyer s found, these are let out. 3
!lams that n!ome from lettn$ should be !omputed under the head Rprofts and $ans of busness of
professonS.
#ompute n!ome from house property for the assessment year 2007-08.
#harles Lasrado 4F @ 4F,#
7
CHART SHOWING COMPUTATION OF INCOME FROM HOUSE PROPERTY
=tem -reatment
(I) Computation o Annual
+ental ,alue
*. -et out house p!ope!t$
&. Sel)occupie% #!ope!t$
3. #a!t o the $ea! o! pa!tl$ let
out an% pa!t o the $ea! sel)
occupie%
.. I p!ope!t$ consists o mo!e
than one unit/ house
0. Co)o1ne!s
2. ,acant Sel)occupie% "ouse
3. "ouse use% o!
assessee4s o1n 5usiness
6. 7eeme% to 5e -et)out
II. 7e%uctions !om 8et Annual
,alue C4e!ton 2"D
(a) Sel)occupie% "ouse
Kut of a!tual rent re!e.ed dedu!t !ost of !ommon fa!ltes su!h
as lft mantenan!e !har$es, l$htn$ of !ommon stars, salary of
!ommon $ardener and /at!hman, pump mantenan!e !har$es et!.
6ater and ele!tr!ty !har$es are to be dedu!ted only f t s
e'pressly mentoned that rent n!ludes them.
Kut of Mun!pal Rental .alue 1MR:2, or ;ar rental .alue 1;R:2.
/h!he.er s h$her s sele!ted as ,'pe!ted Rental :alue 1,R:2. =n
!ase 4tandard Rent under Rent #ontrol 9!t s $.en then the
!omparson s made bet/een the 4tandard rent and ,R: and
/h!he.er s less s sele!ted as 9R: e'!ept /hen a!tual rent s
more than ,R:. Kut of 9R: as sele!ted as per abo.e, amount of
lo!alEmun!pal ta'es 1Mun!pal -a'es, 6ater -a', 4antaton -a'.
,du!aton ta' et!. le.ed by lo!al authorty2 a!tually pad by the
o/ner are allo/ed to be dedu!ted, Balance is net annual value.
Kne self-o!!uped house s e'empted and *9: s redu!ed to *l. =f
assessee o/ns more than one house and !lams as self-o!!uped
then only one house of hs o/n !ho!e shall be e'empted and other
houses shall be deemed to be let-out.
-reat t as let out for full year and !ompute 9R: n same manner.
*o beneft of self o!!upaton.
,a!h su!h untEflatEhouse shall be treated as one house and shall be
$.en respe!t.e treatment.
=f a self o!!uped house property s o/ned by !o-o/ners, they shall
not be assessed as an asso!aton of persons f ther shares are
determnable. =n!ome of house property !omputed under ths head
shall be d.ded and added n ther nd.dual n!ome.
9nnual .alue of su!h property s also taken to be nl.
9nnual .alue of su!h property s also taken to be nl.
-reated as let out house property
Knly one dedu!ton of nterest on loan taken to pur!hase, repar,
reno.ate, !onstru!t the house s allo/ed upto Rs. (0,000 or a!tual
nterest /h!he.er s less lmt has been n!reased to Rs. 1,50,000
f loan s taken for a!Aurn$ or !onstru!tn$ on or after the 1st day
of 9prl 1888 and su!h ac9uisition o! !onstru!ton s !ompleted
/thn three years from the end of fnan!al year in /h!h !aptal s
5o!!o1e%. 9s a result, there shall be loss /h!h !an be set off from
other houses or from any other head.
#harles Lasrado 4F @ 4F,#
8
(b) -et)out "ouses
1. 4tandard +edu!ton
2. =nterest on loan taken to
pur!hase, !onstru!t, repar or
reno.ate the house
III. T!eatment o un!ealise% !ent
I,. T!eatment o un!ealise% !ent
+ecove!e%
,. A!!ea!s o !ent
,I. Joint Expenses
,II. -oss !om "ouse
#!ope!t$
(0% of net annual .alue e.ery year /hether !lamed or not.
9!tual nterest for the pre.ous year 200>-07 M lE5th of pre-
!onstru!ton nterest s allo/ed as dedu!ton /th no lmt. =nterest
on mort$a$e s not allo/ed as dedu!ton unless purpose of loan s
!onne!ted /th house. -here s no lmt on nterest on loan.
9mount of unreal@ed rent s dedu!ted out of a!tual rent re!e.ed
for !al!ulatn$ 9R: f !ondtons as lad do/n are fulflled.
+eemed as n!ome of the year n /h!h re!o.ered.
9rrears of rent are deemed as n!ome from house property of the
year n /h!h re!o.ered but ate! allo/n$ standard dedu!ton @
(0% of su!h amount.
=f some/here e'penses are $.en %ontly for t/o or more houses,
these /ll be apportoned on some !ommon bass and $enerally
Mun!pal Rental :alue ser.es as !ommon bass.
Loss from house property !an be set off from n!ome under any
other head. Loss from self o!!uped house due to nterest on loan
!an be set off from any other head.
9ny loss under the head THouse 3ropertyT /hether from let out or
self o!!uped house /h!h remans unad%usted, !an be !arred
for/ard for 7 su!!eedn$ pre.ous years to be set off from =n!ome
under the head THouse 3ropertyT only.
#harles Lasrado 4F @ 4F,#
10