HOUSE PROPERTY

1 / 67

Q1: Rent of vacant site is taxable as

2 / 67

Q2: Mr. J is having a plot of land. He has let out this to earn some extra income. Rent of plot of land will
be taxable as

3 / 67

Q3: Mr. J has taken a house on rent and sublets the same to Mr. A. Income of Mr. J from such house
property shall be taxable under the head:

4 / 67

Q4: Under the head of house property

5 / 67

Q5: The concept of deemed ownership is given:

6 / 67

Q6: Chargeability of house property is given:

7 / 67

Q7: Mr. J gifted his house property to his wife, Mrs. J, in 2011. She has let out the house property @
Rs. 50,000 pm. The Income from such house property will be taxable in the hands of:

8 / 67

Q8: Mr. J has taken a house property on lease for 15 years from Mr. S and let out the same to Mr. D.
Income from such house earned by Mr. J shall be taxable as

9 / 67

Q9: Mr. J gifted his house property to his married minor daughter. The income from such house
property shall be taxable in the hands of:

10 / 67

Q10: Which out of the following is not a case of deemed ownership of house property?

11 / 67

Q11: Municipal taxes to be deducted from GAV should be

12 / 67

Q12: Where an assessee has more than two house properties for self-occupation, the benefit of nil
annual value will be available in respect of

13 / 67

Q13: Mr. J owns a house property which has fair rent of Rs. 1,50,000, standard rent Rs. 1,20,000 and actual rent
of Rs. 1,30,000. Municipal taxes paid during the AY 2021-2022 i.e. PY 2020-2021 for the past 7 years is
Rs. 1,40,000. The annual value shall be:

14 / 67

Q14: Municipal tax shall not include:

15 / 67

Q15: A house property whose fair rent is Rs. 1,20,000 is self-occupied throughout the previous year.
Municipal taxes paid for the house property are Rs. 20,000. Its net annual value will be:

16 / 67

Q16: Can there be negative NAV:

17 / 67

Q17: Mr. J gives you the following data. What is GAV and NAV of the house property
(1) Municipal value Rs. 12,000 pm
(2) Fair rent Rs. 14,000 pm
(3) Standard rent Rs. 13,000 pm
(4) Actual rent received/receivable Rs. 15,000 pm
(5) Municipal taxes paid 20%

18 / 67

Q18: Mr. J is owners of a big house which is let out at the rent of Rs. 20,000pm. Municipal value of the house
Rs. 15,000pm, fair rent Rs. 21,000pm, standard rent Rs. 18,000pm and municipal tax paid are Rs. 50,000pa.
The house property is vacant for 2 months. Calculate GAV, NAV and house property income

19 / 67

Q19: If net annual value of the house property which is let out is negative then which deduction shall be
allowed u/s 24

20 / 67

Q20: Municipal taxes are deducted from:

21 / 67

Q21: The basis of chargeability of house property under Income Tax Act, 1961 is

22 / 67

Q22: Municipal Taxes are deducted from

23 / 67

Q23: Where standard rent is not applicable GAV shall be higher of

24 / 67

Q24: Mr. J is owner of the flat which has municipal value Rs. 45,000; fair rent Rs. 50,000; standard rent
Rs. 48,000 and actual rent is Rs. 44,000 for 11 Months. There is a vacancy of 1 month. Calculate GAV

25 / 67

Q25: The municipal value determined by the municipal authority is Rs.1,20,000 whereas its annual
rent received is Rs.1,50,000. Municipal tax of the house property is Rs.20,000 out of which Rs.15,000 has
been paid during the AY 2021-2022 i.e. PY 2020- 2021. The NAV of the house property in this case shall be

26 / 67

Q26: Mr. J is the owner of a house property covered under the Rent Control Act. Municipal value
Rs. 30,000, actual rent Rs. 25,000; fair rent Rs. 36,000 and standard rent is Rs. 28,000. The gross annual value of
the house property will be:

27 / 67

Q27: Mr. J owns a house property in Delhi which he wants to give on rent. He seeks your help to
determine expected rent when monthly municipal value is Rs. 20,000, fair rent Rs. 25,000 and standard rent Rs. 22,000.

28 / 67

Q28: Mr. J is owner of a big house which is let out at the Rent of Rs.20,000 pm. Municipal value of the
house Rs.15,000 pm, fair rent Rs.21,000 pm, standard rent Rs.18,000 pm and municipal tax paid is Rs. 5,000
pa. Calculate NAV of the house.

29 / 67

Q19: Mr. J is owner of a big house which is let out at the rent of Rs. 20,000 pm. Municipal value of the
house Rs. 15,000 pm, fair rent Rs. 21,000 pm, standard rent Rs. 18,000 pm and municipal tax paid is Rs. 5,000
pa. Calculate NAV of the house assuming that it was vacant for 2 months.

30 / 67

Q31: Mr. J is owner of a big house which is self-occupied for the full year. Municipal value of the
house Rs. 15,000 pm, fair rent Rs. 21,000 pm, standard rent Rs. 18,000 pm and municipal tax paid is Rs. 5,000
pa. Calculate NAV of the house.

31 / 67

Q32: Mr. J is owner the house which has two floors. The ground floor is let out at Rs. 40,000 pm and first floor is self-occupied. Municipal taxes paid for full
house are Rs. 80,000 pa and interest on borrowed capital for full house payable is Rs. 45,000 pa.
Calculate income from house property AY 2021-
2022 i.e. PY 2020-2021.

32 / 67

Q34: Interest on borrowed capital accrued up to the end of the previous year prior to the year of
completion of construction is

33 / 67

Q35: The ceiling limit of deduction u/s 24(b) in respect of interest on loan taken on 1/4/2020 for
repairs of a self-occupied house for AY 2021-2022 i.e. PY 2020-2021

34 / 67

Q36: Deduction u/s 24(a) of statutory deduction
under the head House Property is

35 / 67

Q37: Deduction for the interest on capital borrowed in covered u/s:

36 / 67

Q38: The maximum amount of deduction of interest on borrowed capital, in aggregate, in case of two
house which are self-occupied shall be (loan was taken on 15/12/1999)

37 / 67

Q39: Any person who has taken loan before 1/4/1999 for purchase or construction of the house which is
self-occupied, maximum deduction for the interest shall be:

38 / 67

Q40: Any person who has taken loan before 1/4/1999 for repairs, renovation, reconstruction, addition or
alteration then interest allowed shall be:

39 / 67

Q41: Mr. J borrowed Rs. 5,00,000 @ 12% p.a. on 1/4/2016 for construction of house property which
was completed on 2/4/2020. The amount of loan is still unpaid. What will be the deduction of interest
for AY 2021-2022 i.e. PY 2020-2021 if the house property is let out:

40 / 67

Q42: Mr. J borrowed Rs. 5,00,000 @ 12% p.a. on 1/4/2016 for construction of house property which
was completed on 2/4/2020. The amount of loan is still unpaid. What will be the deduction of interest
for AY 2021-2022 i.e. PY 2020-2021 if the house property is self-occupied:

41 / 67

Q43: Interest of borrowed capital from outside India is deductible while calculating Income from HP if
condition given u/s.

42 / 67

Q44: Mr. J took loan from a bank for Rs. 10,00,000 on 1/11/2017 @ 8% pa for the construction of the house
which is self-occupied. Construction of the house got completed on 15/3/2021. Compute interest
allowed as deduction u/s 24(b) for AY 2021-2022 i.e. PY 2020-2021.

43 / 67

Q45: Mr. J took loan from a bank for Rs. 1,00,000 on 1/1/2017 @ 12% pa for the construction of the house
which is self-occupied. Construction of the house got completed on 1/1/2021 and full amount of loan
was paid back on 31/1/2020. Compute interest allowed as deduction u/s 24(b) for AY 2021-2022
i.e. PY 2020-2021.

44 / 67

Q46: If an assessee has borrowed money for purchase of a house & interest is payable outside
India. Such interest shall:

45 / 67

Q47: Mr. J is owner of one self-occupied house property in Mumbai for his residence. Fair rent of
that property is Rs. 5,06,000 per annum. Municipal valuation is Rs. 5,88,000. Municipal taxes paid are
Rs. 50,000 including Rs. 1,000 for an earlier year. The house was constructed in December, 2012 with a
loan of Rs. 12,00,000 from SBI taken in November, 2011. During the AY 2021-2022 i.e. PY 2020-2021
Mr. J paid back Rs. 2,30,000 which includes Rs. 1,68,000 as current year interest. Compute the income from
house property income for the AY 2021-2022 i.e. PY 2020-2021

46 / 67

Q48: Mr. J owns two house properties. First property was used half for running his business and
the other half was let-out at Rs. 40,000 per month. The second property was wholly used as a residence by
Mr. J. Municipal value of the two properties was the same at Rs. 7,20,000 each per annum and municipal
taxes paid are 10%. Mr. J’s income from house property for the AY 2021-2022 i.e. PY 2020-2021 will be

47 / 67

Q49: When a house property is let-out throughout the year for a monthly rent of Rs. 22,000 and municipal
tax paid for current year is Rs. 24,000 and for the earlier year paid now is Rs. 16,000, the income from
house property would be:

48 / 67

Q50: Mr. J acquired a property in April, 2020 for self-residential use. The loan interest payable to
State Bank of India for the AY 2021-2022 i.e. PY 2020-2021 amounts to Rs. 2,10,000. The amount
eligible for deduction u/s 24(b) is

49 / 67

Q51: Mr. J borrowed Rs. 5,00,000 @ 12% p.a. on 1/4/2016 for construction of house property which
was completed on 15/3/2020. The amount is still unpaid. The deduction of interest for AY 2021-2022
i.e. PY 2020-2021 shall be:

50 / 67

Q52: J Ltd. is owner of the house property which is let out on rent @ Rs. 60,000 pm. J Ltd. has paid
municipal taxes of Rs. 80,000 pa. It took a loan from bank in Australia for purchasing this house. It has
paid interest to the bank of Rs. 1,20,000 pa. Calculate House Property income if J Ltd. has not done TDS
on such interest and neither has Australian bank paid tax on this.

51 / 67

Q53: J Ltd. is owner of the house property which is let out on rent @ Rs. 60,000 pm. J Ltd. has paid
municipal taxes of Rs. 80,000 pa. It took a loan from bank in Australia for purchasing this house. It has
paid interest to the bank of Rs. 1,20,000 pa. Calculate house property income if J Ltd. has done TDS and
deposited it with the Central Government.

52 / 67

Q54: Treatment of unrealized rent for determining income from house property

53 / 67

Q55: Mr. J received Rs. 30,000 as arrears of rent during the AY 2021-2022 i.e. PY 2020-2021. The amount
taxable u/s 25A would be

54 / 67

Q56: Mr. J received Rs. 90,000 in May, 2020 towards recovery of unrealized rent, which was deducted
from actual rent during the PY 2018-2019 for determining annual value. Legal expense incurred in
relation to unrealized rent is `20,000. The amount taxable u/s 25A for AY 2021-2022 i.e. PY 2020-
2021 would be

55 / 67

Q57: Mr. J and Mr. S are co-owners of a self-occupied property. They own 50% share each. The
interest paid by each co-owner during the year on loan (taken for acquisition of property during the
year 2005) is Rs. 2,05,000 each. The amount of allowable deduction in respect of each co-owner is

56 / 67

Q58: Treatment of unrealized rent is given under:

57 / 67

Q59: Mr. J was allowed deduction of unrealized rent to the extent of Rs. 40,000 in the past when unrealized
rent was also Rs. 40,000. He is able to recover from the tenant Rs. 35,000 as full and final settlement during the
AY 2021-2022 i.e. PY 2020-2021. He is liable for tax on:

58 / 67

Q60: Unrealized rent realized subsequently then its tax treatment is given u/s:

59 / 67

Q61: Unrealized rent is allowed as a deduction from:

60 / 67

Q62: Deduction of unrealized rent is given if certain conditions are satisfied which are given under:

61 / 67

Q63: In case the property is owned by co-owners and it is let out, income from such property shall be
computed:

62 / 67

Q64: In case the property is owned by co-owners and it is let out then income from such property shall
be computed:

63 / 67

Q65: Ms. J let out a property for Rs. 20,000 per month during the AY 2021-2022 i.e. PY 2020-2021. The
municipal tax on the let-out property was enhanced retrospectively. Hence, she paid Rs. 60,000 as
municipal tax which included arrears of municipal tax of Rs. 45,000. Her income from house property is

64 / 67

Q66: Composite rent of let-out house property is taxable as

65 / 67

Q67: When share of each co-owner in a house property is not definite, the income from such
property shall be:

66 / 67

Q68: GGC Ltd. constructed staff quarters and let out the same during the AY 2021-2022 i.e. PY 2020-
2021. Its rent received Rs. 7,50,000 by way of rent from employees during the year. The rental receipt
is taxable as:

67 / 67

Q69: When a house property is let out for a monthly rent of Rs. 25,000 during the AY 2021-2022 i.e. PY
2020-2021 and maintenance expenses by way of salary to sweeper and watchman is Rs. 6,000 per
month, the income from house property would be: