Suresh owns two house properties. First property was used half for running his business and the other half was let-out at ₹4,000 per month. The second property was wholly used as a residence by Suresh. Municipal value of

CS Executive · Tax Laws and Practice · PYQS · December 2014
Suresh owns two house properties. First property was used half for running his business and the other half was let-out at ₹4,000 per month. The second property was wholly used as a residence by Suresh. Municipal value of the two properties were the same at ₹72,000 each per annum and local taxes @ 10%. Suresh's income from house property for the previous year 2013-14 will be —
(A) ₹33,600
(B) ₹31,080
(C) ₹28,560
(D) ₹62,160.

Answer & Explanation:

Correct Answer: Option (B)

Correct answer: (B) ₹31,080. The business portion is outside house-property taxation. Let portion: (48,000−3,600)×70% = 31,080; self-occupied residence contributes nil. This answer applies to the historical law and assessment-year context of this December 2014 paper; later amendments may differ.

Topics: Income Tax Act, 1961

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