Questions for Practice:

Qus 1) Compute GAV for Mr. Dabang

Municipal value
Fair rent
Standard rent
Actual rent received /
receivable
Vacancy

House 1
10000pm
9000pm
12000pm
7000pm
1m
House 2
9000pm
13000pm
11000pm
11500pm
1m
House 3
9000pm
12000pm
7000pm
200000pm
2m
House 4
18000pm
16000pm
16000pm
16500pm
2m

Qus 2) Two brothers A & B are co-owners of a HP with equal share. The property was constructed
during FY 2000-2001. The property consists of 8 identical units & is situated at Mumbai. During
FY 2022-23, each co-owner occupied one unit for residence & the balance of six units were let
out at a rent of 12,000pm per unit. The municipal value of HP is ₹9L & the municipal taxes are
20% of municipal value, which were paid during the year. The other expenses were as follows:
a) Repairs - ₹40,000 b) Insurance premium (paid) - ₹15,000
c) Interest payable on loan for construction - ₹3L
One of the let out units remained vacant for four months during the year. A could not occupy his
unit for 6 mths as he was transferred to Chennai. He does not own any other house. Other income
of Mr. A & Mr. B are 2.9L & 1.8L, respectively Compute income under the head 'Income from
House Property & the total income of two brothers for AY 23-24.
Qus 3) Mr. Raman is a co-owner of a house property along with his brother holding equal share in
the property :
Particulars Amount
Municipal value
Fair rent
Standard rent
Rent received

1,60,000
1,50,000
1,70,000
15,000 pm

The loan for the construction of this property is jointly taken & interest charged by bank is ₹25,000,
out of which ₹21,000 has been paid. Interest on the unpaid interest is ₹450. To repay this loan, Raman
& his brother have taken a fresh loan & interest charged on this loan is ₹5,000. The municipal taxes
₹5,100 have been paid by tenant. Compute the income from HP chargeable to Mr. Raman for the
A.Y. 23-24.
Qus 4) Mr. Krishna owns a residential house in Delhi. The house is having two identical units. First
unit of house is SO by Mr. Krishna & another unit is rented for 12,000pm. The rented unit was
vacant for a months during the year. The particulars of house for the PY 2022-23 are as under &
compute income from HP for AY 23-24.

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Standard Rent -₹2,20,000; Municipal valuation - ₹2,44,000
Fair Rent - ₹2,35,000 Municipal taxes paid - 12% of Municipal Valuation
Light & Water Charges - ₹800 P. M. Interest on borrowed capital - ₹2,000 p.m.
Insurance charges - ₹3,500 p.a. Painting Expenses - ₹16,000 p.a.
Period prior to 1.4.2022
1.4.2021 to 30.6.2023
1.7.2021 to 31.03.2023

49,200
50,800
1,31,300

She had a house property in Bangalore, which was sold in March'21. In respect of this house,
she received arrears of rent of ₹60,000 in March 23. This amount has not been charged to tax
earlier. Compute income chargeable from HP for AY 23-24, exercising the most beneficial
option available.
Qus 5) A owns a HP whose Municipal Value, Fair Rent & Standard Rent are ₹96,000, ₹1,26,000 &
₹1,08,000 (per annum), respectively. During PY 22-23, 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 14 & was completed on 315-2016. Vikas took a
loan of ₹1,00,000 on 1-7-2014 for the construction of building. He paid interest on loan @ 12%
pa & every month such interest was paid. Compute income from HP of Mr. Vikas for the AY
23-24.
Qus 6) Mr. A. & Mr. B constructed their houses on a piece of land purchased by them at New Delhi.
The built-up area of each house was 1,000 sq.ft. ground floor & an equal area in the first floor.
A started construction on 1-04-21 & completed on 1-04-22. B started the construction on 1-
04-21 & completed the construction on 30-06-22. A occupied the entire house on 01-04-2022.
B occupied the ground floor on 01-07-22 & let out the first floor for a rent of 15,000 pm.
However, the tenant vacated the house on 1-12-21 & B occupied the entire house during 01-
01-22 to 31-03-23. Following are the other information:
i) Fair rental value of each unit (ground floor/first floor) ₹1,00,000 pa.
ii) Municipal value of each unit (ground floor / first floor) ₹72,000 pa
iii) Municipal taxes paid by A- ₹8,000 B-₹8,000
iv) Repair and maintenance charges paid by: A ₹28,000 B-₹30,000
A has availed a housing loan of ₹20L. @ 12% p.a. on 01-04-20. B has availed a housing loan
of 12L @ 10% pa. on 01-07-2020 No repayment was made by either of them till 31-03-22.
Compute income from HP for A and B for AY 23-24.
Qus 7) Mr. X owns a residential house in Mumbai. The house is having 2 identical units. First unit
of the house is self -occupied by Mr. X &another unit is rented for 8,000 p.m. The rented unit
was vacant for 2 months during the year. The particulars of house for the PY 22-23 are as
under:
Standard rent ₹1,62,000 pa.
Municipal valuation ₹1,90,000 pa
Fair rent 1,85,000 p.a.
Municipal tax - 15% of municipal valuation

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Light and water charges ₹500 pm
Interest on borrowed capital ₹1500p.m.
Lease money ₹1200pa
Insurance charges 23000pa.
Repairs ₹12,000 pa.
Compute income from house property of Mr. X for the A.Y. 23-24.
Qus 8) Mrs. Indu, a resident individual, owns a house in USA. She receives rent @ 8 2,000 pm. She
paid municipal taxes of $1,500 during FY 21-22. She also owns a two storied house in
Mumbai, ground floor is used for her residence & first floor is let out at a monthly rent of
10,000. Standard rent for each floor is 211,000 pm & fair rent is 10,000 pm. Municipal taxes
paid for the house amounts to $7,500. Mrs. Indu had constructed the house by taking a loan
from a nationalized bank on 20.6.2015. She repaid the loan of 54,000 including interest of
224,000. The value of one dollar is to be taken as 260. Compute total income from house
property of Mrs Indu.
Qus 9) Nisha has house SO and other Let Out. The particulars are as follows:
Municipal value
Fair rent
Standard rent
Date of completion
Municipal taxes payable during year (paid for House II)
Interest on money harrowed for repair during PY
Actual rent

House 1
1,20,000
1,50,000
1,00,000
31/03/99
12%
-
House 2
1,15,000
1,75,000
1,65,000
31/03/01
8%
55,000
1,12,000

Compute Nisha's income from HP for AY 22-23 & suggest which house should be opted by Nisha
to be assessed as self-occupied so that her tax liability is minimum.
Qus 10) Discuss the following issues relating to Income from house property:
(i) Income earned by residents from house properties situated in foreign countries.
(ii) Properties which are used for agricultural purposes.
Qus 11) i] X let out his property to Y. Y sublets it. How is sub-letting receipt to be assessed in hands
of Y?
ii] Y has built a house on a leasehold land. He has let out the property & claims that income
therefrom is chargeable under "IFOS". He deducted expenses on repairs security charges,
insurance & collection charges in all being - 40% of receipts. Is the claim valid?
iii] Z uses his property for his own business. Would the annual value be subject to tax under
the head "Income from house property??

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Qus 12) In May, 2020, Mr. A recovered rent of ₹17,000 from Ms. G, to whom he had let out his house
from June 15 to Aug 2017. He could not realise 2 months rent of ₹24,000 from her and to that
extent his actual rent was reduced while computing income from HP for A.Y 2018-19. From
Sept 17 to Nov 18, he had let out his property to Mr. Sahil. In Oct 2019, he had increased the
rent from ₹13,000 to ₹15,000pm & the same was a subject matter of dispute. The house
remained vacant for 3 months from Dec 20 to Feb 1. In April 21 the matter was finally settled
& Mr. A received ₹28,000 as arrears of rent for the period Oct 19 to Nov 20. However, in
March 21, Mr. A had already sold this residential HP to Mr. S. Mr. A, contends that the amount
recovered as unrealised rent & arrears of rent in the PY. 21-22 would not be taxable in his
hands in that year, since he had sold such HP in PY 20-21 itself. Is contention of Mr. Aakarsh
correct? If not, under what head would such income be taxable and compute the income
taxable under that head for A.Y. 23-24?