Varun has two let out properties, the details for the previous year 2022-23 are given as under: Particulars House-1 (₹) House-2 (₹) Municipal value 3,70,000 7,20,000 Fair rent 3,90,000 6,80,000 Standard rent under the Re

CS Executive · Tax Laws and Practice · PYQS · December 2023
Varun has two let out properties, the details for the previous year 2022-23 are given as under: Particulars House-1 (₹) House-2 (₹) Municipal value 3,70,000 7,20,000 Fair rent 3,90,000 6,80,000 Standard rent under the Rent Control Act 4,20,000 6,90,000 Actual rent 6,00,000 6,00,000 Municipal tax due for the year 30,000 1,20,000 Municipal tax of past years paid during the year 37,000 1,03,500 Interest on moneys borrowed C.Y.-paid 3,50,000 2,70,000 Interest on moneys borrowed C.Y.-not paid 1,10,000 90,000 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.

Answer & Explanation:

Computation of Total Income from House Property of Mr. Varun for the A.Y. 2023-24 Particulars House -I (₹) House -II (₹) Municipal value 3,70,000 7,20,000 Fair rent 3,90,000 6,80,000 Higher of the two (A) 3,90,000 7,20,000 Standard rent (B) 4,20,000 6,90,000 Reasonably expected rent - lower of (A) and (B) 3,90,000 6,90,000 Actual rent 6,00,000 6,00,000 Gross annual value [*Expected Rent as gross annual value (higher from expected rent or actual rent)] 6,00,000 6,90,000* Less: Municipal tax paid during the year (37,000) (1,03,500) Net annual value 5,63,000 5,86,500 Less: Deduction u/s 24 @ 30% of NAV (1,68,900) (1,75,950) Interest on moneys borrowed both paid and unpaid (4,60,000) (3,60,000) Income from House Property (65,900) 50,550

Topics: Income Tax

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