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Inter Test Paper 5 - House Property

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139 views2 pages

Inter Test Paper 5 - House Property

Notes of hp

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khushvardhan691
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© © All Rights Reserved
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EKATVAM ACADEMY

TEST PAPER 5 HOUSE PROPERTY


CA/CMA INTER (25 Marks)

QUESTION 1 (5 Marks)
Ganesh has a property whose municipal valuation is ₹ 2,50,000 p.a. The fair rent is ₹
2,00,000 p.a. and the standard rent fixed by the Rent Control Act is ₹ 2,10,000 p.a. The
property was let out for a rent of ₹ 20,000 p.m. However, the tenant vacated the property
on 31.1.2024. Unrealised rent was ₹ 20,000 and all conditions were satisfied . He
paid municipal taxes @ 8% of municipal valuation. Interest on borrowed capital was 65,000
for the year. Compute the income from house property of Ganesh for AY 2024-25.

QUESTION 2 (5 Marks)
Mr. Raman is a co-owner of a house property along with his brother holding equal share in
the property.

Particulars ₹
Municipal value of the property 1,60,000
Fair rent 1,50,000
Standard rent under the Rent Control Act 1,70,000
Rent received 15,000 p.m.
The loan for the construction of this property is jointly taken and the interest charged by
the bank is ₹ 25,000, out of which ₹ 21,000 has been paid. Interest on the unpaid interest
is ₹ 450. To repay this loan, Raman and his brother have taken a fresh loan and interest
charged on this loan is ₹ 5,000.
The municipal taxes of ₹ 5,100 have been paid by the tenant.
Compute the income from this property chargeable in the hands of Mr. Raman for the
A.Y. 2024-25.

QUESTION 3 (5 Marks)
Ganesh has three houses, all of which are self-occupied. The particulars of the houses for the
P.Y. 2023-24 are as under:
Particulars House I House II House
III
Municipal valuation p.a. ₹ 3,00,000 ₹ 3,60,000 ₹ 3,30,000
Fair rent p.a. ₹ 3,75,000 ₹ 2,75,000 ₹ 3,80,000
Standard rent p.a. ₹ 3,50,000 ₹ 3,70,000 ₹ 3,75,000
Date of completion/purchase 31.3.2000 31.3.2002 01.4.2016
Municipal taxes paid during the year 12% 8% 6%
Interest on money borrowed for repair of property - 55,000
during the current year
Interest for current year on money borrowed in 1,75,000
April, 2016 for purchase of property

Compute Ganesh’s income from house property for A.Y.2024-25 and suggest which houses
should be opted by Ganesh to be assessed as self-occupied so that his tax liability is
minimum.

CA VIJAY SARDA | 8956784251/52/53 www.ekatvamacademy.com


QUESTION 4 (5 Marks)
Mr. Anand sold his residential house property in March, 2023.
In June, 2023, he recovered rent of ₹ 10,000 from Mr. Gaurav, to whom he had let out his
house for two years from April 2017 to March 2019. He could not realise two months rent
of ₹ 20,000 from him and to that extent his actual rent was reduced while computing
income from house property for A.Y.2019-20.

Further, he had let out his property from April, 2019 to February, 2023 to Mr. Satish. In
April, 2021, he had increased the rent from ₹12,000 to ₹ 15,000 per month and the same
was a subject matter of dispute. In Sep, 2023, the matter was finally settled and Mr.
Anand received ₹ 69,000 as arrears of rent for the period April 2021 to February, 2023.

Would the recovery of unrealised rent and arrears of rent be taxable in the hands of Mr.
Anand, and if so in which year?

QUESTION 5 (5 Marks)
Poorna has one house property at Indira Nagar in Bangalore. She stays with her family in
the house. The rent of similar property in the neighbourhood is ₹ 25,000 p.m. The
municipal valuation is ₹ 2,80,000 p.a. Municipal taxes paid is ₹ 8,000. The house
construction began in April 2017 with a loan of ₹ 20,00,000 taken from SBI Housing
Finance Ltd. @9% p.a. on 1.4.2017. The construction was completed on 30.11.2019. The
accumulated interest up to 31.3.2019 is ₹ 3,60,000. On 31.3.2024, Poorna paid ₹ 2,40,000
which included ₹ 1,80,000 as interest. There was no principal repayment prior to this
date. Compute Poorna’s income from house property for A.Y. 2024-25 assuming that she
has exercised the option of shifting out of default tax regime provided u/s 115BAC(1A).

CA VIJAY SARDA | 8956784251/52/53 www.ekatvamacademy.com

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