Income under the head House Property

The Gross Annual Value of any House Property cannot exceed :

(A)Municipal Valuation

(B)Expected Rent

(C)Standard Rent

(D)Fair Value

Who will be deemed Owner in the case of a House Property when the Husband has transferred the House Property to his wife which is necessitated owning to a separation between Husband and Wife and for inadequate consideration ?

(A)Husband

(B)Wife

(C)Either (A) or (B)

(D)None of the above

Out of the following which will be deducted from GAV (Gross Annual Value) of a house property ?

(A)Municipal Taxes of previous years and current year paid by landlord but reimbursed by the tenant

(B)Municipal taxes of current year paid by the tenant

(C)Municipal taxes of current year payable

(D)Municipal taxes of Previous Years and current year paid by the owner during the current previous year

(b)Varun has two let out properties, the details for the previous year 2022-23 are given as under :

Compute income under the head ‘house property’ in the hands of Varun for the assessment year 2023-24, assuming none opted to pay tax under section 115BAC.

Sankar let out a property on rent up to 30th June, 2019 and thereafter sold the property. The tenant has not paid rent for 12 months prior to 30th June, 2019. In January, 2023 based on court decree Sankar received ₹ 3, 40,000 from the tenant by way of rent. He does not own any other house property. He incurred ₹ 70,000 towards advocate fee. How much of the amount received by Sankar is liable to tax?

(A)₹ 3, 40,000

(B)₹ 2, 70,000

(C)₹ 2, 38,000

(D)₹ 1, 90,000

Rani received rent from a House Property in Rural Area ₹ 20,000 p.m. This Rent is taxable under the head of :

(A)Income from Business & Profession

(B)Income from House Property

(C)Income from Other Sources

(D)Not Taxable (Exempted Income)

Javed borrowed ₹ 5,00,000 @ 12% p.a. on 1st April, 2013 for construction of let out house property whose construction was completed on 15th March, 2019. The loan was repaid on 31st August, 2021. The deduction of interest for previous year 2021- 22 shall be :

(A)₹ 60,000

(B)₹ 85,000

(C)₹ 25,000

(D)₹ 30,000

Nishit was allowed deduction of unrealized rent to the extent of ₹ 1,20,000 in F.Y. 2020-21, although the total unrealized rent during the F.Y. 2020-21 was ₹ 1,60,000. In F.Y. 2021-22 he is able to recover from the tenant ₹ 90,000 on account of such unrealized rent. His Income under the head of House Property for assessment year 2022-23 is :

(A)₹ 90,000

(B)₹ 63,000

(C)₹ 35,000

(D)₹ 50,000

Mr. Kumar owns a commercial building in Rajasthan, which is let out on 1st April, 2020 at a monthly rent of ₹ 30,000. He paid for municipal taxes of ₹ 15,000 and ₹ 20,000 for the financial year 2019-20 and 2020-21 on 31st March, 2021 and 1st May 2021 respectively. What is the net income chargeable under income from house property for assessment year 2021-22?

(A)₹ 2, 41,500

(B)₹ 2, 27,500

(C)₹ 2,38,000

(D)₹ 2,52,000

House property owned by Pankaj located at Ajmer having municipal valuation : ₹ 1,55,000, fair rent: ₹ 1,40,000, standard rent: ₹ 1,24,000 was let out for the period 1st April, 2019 to 15th November, 2019 on a rent of ₹ 8,000 per month and from 16th Nov. 2019 to 31st January 2020 on a rent of ₹ 13,000 per month. Pankaj transferred the property to Shyam on 1st February, 2020. The gross annual value (GAV) of the house property for assessment year 2020-21 shall be taken at _____

(A)₹ 1,03,333

(B)₹ 92,500

(C)₹ 1,24,000

(D)₹ 1,30,000

The Gross Annual Value (GAV) as per section 23(1) of the Act of a house property owned by Suresh covered by Rent Control Act, remained let out during the previous year 2019-20 for which (i) Municipal Valuation is ₹ 3,00,000; (ii) Actual (de facto) Rent is ₹ 3,20,000; (iii) Fair rent is ₹ 3,60,000 and (iv) Standard rent is ₹ 4,00,000 shall be taken at -------

(A)₹ 3,60,000

(B)₹ 4,00,000

(C)₹ 3,20,000

(D)₹ 3,00,000

Section 244A provides where the refund is out of any tax paid under section 140A, simple interest shall be calculated at the rate of ________ comprised in the period from the date of furnishing of return or payment of tax, whichever is later, to the date on which the refund is granted.

(A)1% for every month

(B)1% for every month or part of a month

(C)1½% for every month

(D)1½% for every month or part of a month

Pushpal, a non-resident Indian in the previous year 2019-20 was in receipt of rent of the house property located in Singapore of ₹ 30,00,000. The amount of rent was transferred and credited in the bank account of Pushpal, maintained with SBI, New Delhi by the tenant quarterly. However, the rent for the last quarter of ₹ 7,50,000 was not transferred by the tenant in the account of Pushpal till 31-03-2020. The Rental Income of the house located in Singapore which will be subject to tax in India under the head Income from house property in A.Y. 2020-21 shall be-------------

(A)₹ 22,50,000

(B)₹ 21,00,000

(C)₹ 15,75,000

(D)Not taxable as property is in Singapore and he is non-resident

Find out with the help of given details/information, the gross annual value (GAV) of a house owned by Ramnath covered by Rent Control Act remained let out during the year 01-04-2019 to 01-04-2020 :

(i)Municipal value ₹ 7,00,000

(ii)Actual (de facto) Rent ₹ 6,48,000

(iii)Fair Rent ₹ 6,60,000, and

(iv)Standard Rent ₹ 7,20,000

(A)7,20,000

(B)6,48,000

(C)7,00,000

(D)6,60,000

Sonu had let out a house located at Jaipur to Monu since 1.4.2018 on a rent of ₹ 3,000 p.m. Monu paid the rent regularly up to 30.11.18 and vacated the house on 31.3.2019 when it was sold by Sonu to Ramu. Sonu after great persuasion could recover an amount of ₹ 9,000 from Monu in July, 2019. The Income chargeable under House Property in A.Y. 2020-21 shall be -----

(A)₹ 9,000

(B)₹ 6,300

(C)NIL

(D)₹ 6,750

Supreme Court in case of Chennai Properties and Investments Ltd vs. CIT (2015) has held that income from letting of properties by a company whose main object as per the Memorandum of Association (MOA) is to acquire and let out properties be taxable as :

(A)Income under "House Property"

(B)Income under "Profits & Gains of business or profession"

(C)Income under "Other Sources"

(D)Income under "Capital Gains"

Chiranjeevi entered into an agreement for sale of his house property located at Noida to Yashashwi on 1st August, 2018 for a total sale consideration of ₹ 125 lakh. Yashashwi paid an amount of ₹ 25 lakh by account payee cheque to Chiranjeevi on 1st August, 2018 and balance was agreed to be paid at the time of registration of the Conveyance Deed which could only be executed by Chiranjeevi on 1st October, 2019. The Stamp Valuation Authority determined the value of the house property on the date of registration of deed at ₹ 150 lacs. However, the value determined by the Stamp Valuation Authority of the house on the date of agreement (1st August, 2018) was ₹ 140 lacs. The amount of sale consideration for the purpose of computing the capital gain of the property in A.Y. 2020-21 to be taken by Chiranjeevi shall be :

(A)₹ 125 lacs

(B)₹ 150 lacs

(C)₹ 140 lacs

(D)₹ (140-25) = 115 lacs

Rajendra a non-resident Indian in the previous year 2018-19 was in receipt of rent of house property located in Dubai of ₹ 27,50,000. The amount of rent was transferred and credited in the bank account of Rajendra maintained with SBI, Vadodara by the tenant quarterly. The Annual Letting Value (ALV) of the house located in Dubai subject to tax under the head Income from house property in A.Y. 2019-20 shall be ....................... .

(A)₹ 16,50,000

(B)₹ 19,25,000

(C)₹ 27,50,000

(D)Not taxable as property is in Dubai and he is non-resident

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 2018-19 of which;

(i)Municipal value is ₹ 3,50,000

(ii)Actual (De Facto) Rent is ₹ 3,20,000

(iii)Fair Rent is ₹ 3,00,000, and

(iv)Standard Rent is ₹ 3,60,000

(A)₹ 3,60,000

(B)₹ 3,20,000

(C)₹ 3,50,000

(D)₹ 3,00,000

House owned by Suresh was sold on 1st January, 2019 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. 2019-20 of this house shall be :

(A)₹ 63,000

(B)₹ 50,400

(C)₹ 46,200

(D)₹ 44,100

Chirag entered into an agreement for sale of his house property located at Jaipur to Yash on 1st August, 2017 for a total sale consideration of ₹ 95 lakh. Yash paid an amount of ₹ 20 lakh by account payee cheque to Chirag on 1st August, 2017 and balance was agreed to be paid at the time of registration of the Conveyance Deed which could only be executed by Chirag on 1st September 2018. The Stamp Valuation Authority determined the value of the house property on the date of registration of deed at ₹ 140 lakh. However, the value determined by the Stamp Valuation Authority of the house on the date of agreement (1st August, 2017) was ₹ 110 lakh. The sale value for the purpose of computing the capital gain of the property in A.Y. 2019-20 to be taken by Chirag shall be :

(A)₹ 95 lakh

(B)₹ 110 lakh

(C)₹ 140 lakh

(D)₹ 120 lakh

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

(a)Nisha, a resident of India owns a house property at Karnal in Haryana. The municipal value of the property is ₹ 7,50,000, fair rent of the property is ₹ 6,30,000 and standard rent is ₹ 7,20,000 per annum.

The property was let out for ₹ 75,000 per month for the period April, 2018 to December, 2018.

Thereafter the tenant vacated the property and Nisha used the house for self residence. Rent for the months of November and December, 2018 could not be realized from the tenant. The tenancy was bonafide but the defaulting tenant was in occupation of another property of the assessee, paying rent regularly.

She paid municipal tax @ 12% during the year and paid interest of ₹ 35,000 during the year for amount borrowed towards repairs of the house property.

You are required to compute her income from ‘‘House Property’’ for the A.Y. 2019-20.

The loss computed under the head ‘‘Income from house property’’ can be setoff by intra head adjustment during the same year from :

(A)any other head of income upto maximum of ₹ 2,50,000

(B)any other head of income upto maximum of ₹ 3,00,000

(C)any other head of income upto maximum of ₹ 5,00,000

(D)any other head of income upto maximum of ₹ 2,00,000

(c)Anupam owns a residential house property in Noida (UP). It has two equal residential units – Unit I and Unit II. Unit I is self-occupied by Anupam for his residential purpose, while Unit II is let out at ₹ 10,000 per month to Mr. Pranshul.

Municipal value of the property is 10 times of the Annual Municipal tax. Standard Rent is ₹ 3,00,000 per annum and fair rent is ₹ 70,000 per quarter. Municipal tax of such property for the financial year 2025- 26 is ₹ 36,000, 50% of such municipal tax is pa id by Mr. Pranshul and remaining 50% is still outstanding till 3l-03-2026. Other expenses for the financial year 2025- 26 being repairs : ₹ 2,500, Property Insurance : ₹ 6,000, Interest on capital (borrowed from bank during 2020-21) for the constructing the property : ₹ 1,65,000.

Compute the Income from House Property of Anupam for the assessment year 2026-27 on the assumption that he has opted out of default tax regime under section 115BAC of the Income Tax Act, 1961.

(b)Anju Lata owns the two-house properties in India. The first House is in Delhi and used by her for self-residence during the financial year 2024-25. Municipal Value of this house was ₹ 2,00,000; Fair Rent was ₹ 2,40,000 and Standard Rent was ₹ 2,20,000. Municipal Taxes of this house was ₹ 20,000 (out of which only ₹ 12,000 paid by Anju Lata during the financial year 2024-25).

The second house is in Mumbai which was Let out for 9 months during the financial year 2024-25 at ₹ 30,000 per month, and Vacant for 3 months despite efforts to let it out. Municipal Value of second house was ₹ 3,60,000; Fair Rent was ₹ 3,90,000 and Standard Rent was ₹ 3,75,000. Municipal Taxes of this house was ₹ 30,000 (fully paid by tenant);

Interest paid on borrowed capital by Anju Lata for House 1 at Delhi is ₹ 2,40,000 and for House 2 at Mumbai is ₹ 1,50,000. Compute the Income from house property for Anju Lata for the Assessment Year 2025-26. Assume she has exercised the option of shifting out of the default tax regime provided under section 115BAC.

( c )Sanjay owns a house property whose Municipal Value, Fair Rent and Standard Rent are ₹ 96,000, ₹ 1,26,000 and ₹ 1,08,000 (per annum), respectively. During the financial year 2024- 25, one-third of the portion of the house was let out for residential purpose at a monthly rent of ₹ 5,000. The remaining two-third portion was self-occupied by him. Municipal tax @ 11% of municipal value was paid during the year.

The construction of the house began in June, 2019 and was completed on 31-5-2022. Vikas took a loan of ₹ 1,00,000 on 1-7-2019 for the construction of building. He paid interest on loan @ 12% per annum and every month such interest was paid. Assume whole principal amount is outstanding till 31.03.2025.

Compute income from house property of Sanjay for the A. Y. 2025-26 if he has exercised the option of shifting out of the default tax regime provided under section 115BAC.

Mr. R has three houses for self-occupation. What would be the tax treatment for A.Y. 2024-25 in respect of income from house property ?

(A)One house, at the option of Mr. R, would be treated as self-occupied . The other two houses would be deemed to be let out

(B)Two houses, at the option of Mr. R, would be treated as self-occupied. The other house would be deemed to be let out

(C)One house, at the option of Assessing Officer, would be treated as self- occupied. The other two houses would be deemed to be let out

(D)Two houses, at the option of Assessing Officer, would be treated as self- occupied. The other house would be deemed to be let out

Abhinav has three residential house properties, all of which are self-occupied, the annual value of :

(A)All the house properties shall be computed as if all these are deemed to be let out

(B)All the three house properties shall be Nil

(C)One house property shall be nil and for the other two properties, annual value shall be computed as if these are let out

(D)Two house properties shall be nil and for one house property annual value shall be computed as if it is deemed to be let out

Siddharth has 3 houses in different buildings in Mumbai kept and used for selfoccupation.Treatment to be given in respect of income under the head house property relating to these 3 houses for A.Y. 2021-22 shall be :

(A)One house, at the option of Siddharth, will be treated as self-occupied.The other 2 houses will be deemed to be let out.

(B)One house at the option of A.O. will be treated as self-occupied. The other 2 houses will be deemed to be let out.

(C)Two houses, at the option of Siddharth, will be treated as self-occupied. The other house will be deemed to be let out.

(D)Two houses at the option of A.O., would be considered as self-occupied. The other house will be deemed to be let out.

Rajneesh and Amarjeet are the co-owners of a house located at Delhi having 50% share each, which is being used by both of them as self-occupied property. The house was purchased in the year 2004 by taking the loan from SBI. The interest paid by each co-owner during the previous year 2020- 21 on loan (taken for acquisition of property during the year 2004) is ₹ 3,05,000. The amount of allowable deduction in respect of interest paid to each of the co-owner when both of them do not opt for section 115BAC in A.Y. 2021-22 would be :

(A)₹ 3,05,000

(B)₹ 1,52,500

(C)₹ 2,00,000

(D)₹ 30,000

Shanti Lal has taken loan of ₹ 5,00,000 on 1st October, 1999 @ 10% p.a. for construction of a house which was completed on 1st October, 2019 and the house remained self-occupied throughout the previous year 2020-21. The assessee has income under the head salary of ₹ 4,00,000. Shanti Lal has paid life insurance premium of ₹ 30,000. Compute total income for A.Y. 2021-22. (Assuming assessee has opted U/s 115BAC).

(A)₹ 2,45,000

(B)₹ 3,40,000

(C)₹ 4,00,000

(D)₹ 3,70,000

If the assessee has more than two houses that are self-occupied, the choice of houses that should be construed as self-occupied and for the others to be considered as deemed to be let out, lies with :

(A)Assessing officer

(B)Assessee

(C)Either (A) or (B)

(D)Relevant Jurisdiction ITO where the house was situated

Sreelekha let out a property on rent from 01.08.2020 which was self-occupied previously for residential purposes. The actual rent was ₹ 30,000 per month. The municipal value was ₹ 35,000 per month. The fair rent is ₹ 40,000 per month. Standard rent under the Rent Control Act is ₹ 32,000 per month. What is her income under the head ‘‘house property’’ for the assessment year 2021-22.

(A)₹ 2,24,000

(B)₹ 1,68,000

(C)₹ 1,96,000

(D)₹ 1,79,200

Rajsekar owned three identical properties. He let out one property for a monthly rent of ₹ 50,000 during the financial year 2020-21. The other two properties are self-occupied by him. Compute his income under the head house property for the assessment year 2021- 22.

(A)₹ 8,40,000

(B)₹ 12,60,000

(C)₹ 4,20,000

(D)₹ 3,40,000

Goel completed the construction of a residential house property on 30-6-2018. He already owns another property in the same town which is self-occupied. The new construction is also self-occupied by him. He wants to treat the new construction as deemed let out property. The relevant details of the new property are : (i) municipal value ₹ 3,00,000; (ii) fair rent ₹ 3,60,000; and (iii) standard rent ₹ 2,80,000. The gross annual value of the property would be :

(A)₹ 2,80,000

(B)₹ 2,10,000

(C)₹ 3,00,000

(D)₹ 3,60,000

(a)Compute the income chargeable under the head of house property for Ankita for the assessment year 2025-26.

(c)Compute the Income chargeable under the head of house property for G & Co. for the assessment year 2024-25.

(c)Raghuveer let out a property on rent for ₹ 16,000 per month from 16th February, 2023. Fair rental value of such property is ₹ 60,000 per quarter, whereas Standard rent is ₹ 3,20,000 per annum. During the financial year 2023-24, Raghuveer paid following expenses for such house property :

Municipal taxes for F.Y. 2023-24 - ₹ 30,000 (which is 10% of municipal value);

Lease rent- ₹ 32,800;

Repair charges - ₹ 23,700;

Fire insurance - ₹ 31,150; and

Interest on capital borrowed for construction - ₹ 72,300.

The construction of the property was completed on 15th February, 2023. The tenant had vacated this house on 29th February, 2024. Such house was vacant for the month of March, 2024.

You are required to calculate the taxable income from the house property of Raghuveer for the assessment year 2024-25, assuming that he does not opt to pay tax under section 115BAC.

( a )Sanjay has a house consisting of two identical units. One unit is self-occupied and the other is let out for a monthly rent of ₹ 30,000 throughout the financial year 2023-24. Municipal tax paid during the year for the total house property amounts to ₹ 70,000 (which was paid by cash ₹ 30,000 and through online banking ₹ 40,000). The house property was constructed out of housing loan taken from SBI on 1st July, 2020 for ₹ 30 lakh @ 8% interest. The construction of property was completed on 30th March, 2022 and whole of the loan amount was still outstanding at that day. Interest on housing loan for the financial year 2023-24 was due but not paid.

Compute Income from house property of Sanjay for the assessment year 2024-25, assuming he has not opted to pay tax under section 115 BAC.

Chandra owns a house property constructed with the borrowed capital on 31.03.2008 and since then used by him for own residential purposes. Municipal value of the property is ₹ 1,00,000 whereas fair rent is ₹ 80,000 and standard rent is ₹ 90,000. Expenses incurred by Chandra during the previous year 2019-20 for Municipal tax : ₹ 15,000, insurance : ₹ 2,000, interest on capital borrowed to construct the property ₹ 70,000. Income/loss chargeable under the head house property for the assessment year 2020-21 shall be __________

(A)( ₹ 70,000)

(B)( ₹ 85,000)

(C)( ₹ 30,000)

(D)( ₹ 2,00,000)

Santhnam purchased in October, 2017 with the financial assistance by way of 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, 2019 paid by him was of ₹ 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 for A.Y. 2019-20.

(A)₹ 30,000

(B)₹ 2,18,780

(C)₹ 1,50,000

(D)₹ 2,00,000

V received ₹ 1,80,000 in May, 2023 towards recovery of unrealized rent, which was deducted from actual rent during the P.Y. 2021-22 for determining annual value. Legal expense incurred in relation to unrealized rent is ₹ 40,000. The amount taxable under section 25A for A.Y. 2024-25 would be :

(A)₹ 1,40,000

(B)₹ 1,26,000

(C)₹ 1,80,000

(D)₹ 98,000

A deduction of 1,00,000 towards unrealised rent was allowed to Z, being the owner of a house in the Assessment year 2018-19. Z sold the house on 14th January, 2020 and subsequently in the previous year 2022-23 he realised 80,000 from the tenant. If Z spent 10,000 for the realization of the rent, the amount taxable out of the realised rent in the Assessment year 2023-24 is :

(A)56,000

(B)80,000

(C)70,000

(D)Nil

Satish aged 45 years is having a house property at Hyderabad. The municipal valuation is ₹ 12,50,000 and fair rent of the property is 11,00,000. The standard rent is ₹ 11,50,000. He let out the property for a rent of ₹ 1,05,000 per month during the financial year 2021-22. Rent of March could not be realised despite all efforts, as the tenant have vacated the property. All the conditions for unrealised rent were satisfied. He had paid the municipal taxes of 2,30,000. He has paid an interest of 2,50,000 during the year for the amount borrowed for construction of the property. Compute the income from house property for Assessment Year 2022-23 ? (Assessee has not opted for section 115BAC) :

(A)₹ 3,97,500

(B)₹ 4,47,500

(C)₹ 5,21,000

(D)₹ 4,71,000

A House owned by Meghna and located at Jaipur was on rent till it was sold out in the month of March, 2020. She received an amount of ₹ 45,000 as arrears of rent from the tenant in the month of February, 2021. The taxable amount of arrears of rent so received by her in A.Y. 2021-22 would be :

(A)₹ 31,500

(B)₹ 22,500

(C)₹ 45,000

(D)NIL

Sudha has to pay ₹ 1,20,000 to the co-operative society annually against the house allotted to her by society. She initially paid a sum of ₹ 3,00,000 to become a member of the housing co-operative society during the previous year 2021-22. The term of the payment was for 15 years. The amount allowed to be deducted u/s 80C for the previous year 2021-22 will be :

(A)₹ 1,20,000

(B)₹ 4,20,000

(C)₹ 1,40,000

(D)₹ 1,50,000