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CA S P DESAI
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House property problems MIM Mr. Oswal owns a building consisting of three identical units, whose construction was completed on 31st March 2008. The building was occupied from 1st April 2008 onwards. The particulars pertaining to the three units fro the year ended 31st March 2009 are given below:
Unit 1 (Rs.) 60,000 -3,000 3,000 1,200 2,400 Unit 2 (Rs.) 60,000 72,000 5,000 5,000 1,200 2,400 Unit 3 (Rs.) 60,000 -3,000 3,000 1,200 2,400

Particulars Fair Rent Rent Received Municipal taxes --Paid --Due but not yet paid Land Revenue Due but Outstanding Ground Rent Due but not paid

Nature of occupation: Unit 1-Self occupied for residence. Unit 2- Let out for residence. Unit 3- Used for own business. On 1st April, 2006 he h ad borrowed a sum of Rs. 5,00,000 bearing interest rate of 12% P.A. for construction of this building. The total cost of construction of the building is Rs. 12,00,000. The interest on borrowed sum on the construction of the Building is Rs. 72,000. Compute the income from house property of Mr. Oswal for the Assessment year 200910 . 2. Mr. Joseph owns two houses in Mumbai. He gives you the following details for the financial year 2008-09. ___________________________________________________________________ Particulars House#1 House #2 Fair Rental Value.25,00022,000 Rent Received..28,000.25,000 Municipal Valuation26,000.25,000 Municipal Tax Paid3,000...4,000 Repairs1,500..2,500 Fire Insurance Premium....2,000...3,000 Land Revenue.2,500...4,000 Ground Rent ..1,6006,000 Nature of Occupation..Residence..Business Additional information Mr. Joseph had obtained a loan by mortgaging House#1. The loan was used to finance the construction of House#2. During the year Rs.4000 was paid as interest.

2 You are required to compute Josephs taxable income under the head income from house property. Mr. Mukund is the owner of the following properties for which the details are as follows for the year 2008-09:House I House II (Self-occupied) (Let out) Municipal Rateable Value (Rs.) 63,000 2,27,000 Municipal Tax thereon 20% 15% Rent Received (Rs.) NIL 2,10,000 Repairs (Rs.) 30,000 45,000 Interest on borrowings for construction (Rs.) 16,000 48,000 HDFC Loan repair (Rs.) 36,000 24,000 From the above, compute his income from House property
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Mr. Pandit owns three houses on each at Mumbai, Delhi and Baroda the details of which for the year ended 31-03-2009 are as follows:1. The house at Mumbai has an annual rental value of Rs. 75,000 and is occupied by Mr. Pandit for his residence. He has to pay Rs. 10,000 per annum for municipal taxes. For constructing this house he had borrowed money of which 2,00,000 is still outstanding. Interest is payable thereon @ 9.5% per annum. The house was vacant for three months. 2. The house at Delhi has an annual rental value of Rs. 1,25,000 and is also occupied by Mr. Pandit for his residence whenever he comes to Delhi. The Municipal ground rent @ Rs 500 per month is also payable. Mr. Pandit had borrowed Rs. 3,00,000 on 1-7-2002 for carrying out repairs for the house on which interest @ 12% per annum is payable. He has also paid fire insurance premium of Rs. 2500 for the above house. 3. The construction of the house at Baroda has been completed on 31-03-2006. And it has 4 flats all of which have been rented out for residential purposes. The fair rent of each flat is Rs. 5,000 per month whereas the actual rent received is Rs. 6000 per month for 2 flats and Rs. 4500 per month for the other 2 flats. Municipal taxes for each flat amount to Rs. 3500 per annum. Other expenditure incurred for the above house is as follows: a. Salary to rent collector Rs. 1500 per month b. Fire insurance premium Rs. 1000 per flat c. Interest payable on loan taken for construction of the house Rs. 36000. Calculate the Income from House Property of Mr. Pandit for the assessment year 2009-2010.
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