DIRECT TAX

Dr. Suresh A S
Faculty of Management and Commerce
UNIT 2 – Income from House Property,

Problems on Income from House

Property
DIRECT TAX
Session Outline

• Practice Problems on HP
DIRECT TAX
Practice Sum in Income from House Property

1. Calculate the Gross Annual Value of Mr. Ganesh from the

following particulars given below:

FRV 90,000 p.a

MRV 85,000 p.a

Annual Rent 75,000 p.a

Standard Rent 55,000 p.a

DIRECT TAX
Practice Sum in Income from House Property

2. Calculate Gross Annual Value of Mr. Ajay from the particulars

given below:

Annual or market Rent: Rs. 1,68,000 per annum

Municipal Rental Value: Rs. 1,60,000

Fair Rental Value: Rs. 1,80,000

Standard Rent: Rs. 1,75,000

Unrealized rent of the P.Y Rs. 42,000

Vacancy Period 1 month

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Practice Sum in Income from House Property

3. Calculate Net Annual Value of Mr. Kuldeep from the

particulars given below:
Actual Rent: Rs. 15,000 per month
Municipal Rental Value: Rs. 1,50,000
Fair Rental Value: Rs. 1,70,000
Standard Rent: Rs. 1,30,000
Unrealized rent of the P.Y Rs. 18,000
Vacancy Period 1 month
Municipal tax paid Rs. 15,000
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Practice Sum in Income from House Property

4. Determine
. the net annual value of Mr. Arun (resident). The particulars are as follows:
Particulars House I House II House III
*Expected Fair rent 84,000 84,000 84,000
*Municipal valuation 72,000 72,000 72,000
*Standard rent 80,000 90,000 78,000
*Annual Rent Received
(Let out Throughout P.Y) 1,20,000 1,44,000 1,80,000
*Unrealized rent 30,000 72,000 72,000
*Local taxes borne and
Paid by owner in P.Y 6,000 12,000 18,000
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Practice Sum in Income from House Property

5. Mr. Praveen is the owner of three houses. The particulars are as

follows:
Particulars House A House B House C
Annual Fair rent 40,000 35,000 50,000
Municipal valuation 50,000 40,000 50,000
Standard rent 45,000 42,000 35,000
Let out (per month) 3,000 2,500 -----
Purpose or use Let out Let out Self-occupied
residential residential
Interest on loan 15,000 5,000 20,000

Municipal tax is 10% of Municipal value. Municipal tax of house A was paid
by tenant, but House B was not paid till 31.03.23. Municipal tax of House C
was paid by owner. House remained vacant for 4 months (House A and B).
Compute income from house property for assessment year 2023-24.
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Practice Sum in Income from House Property

6. Particulars House I House II

Municipal valuation 400000 1200000
Fair Rental Value 720000 720000
Rent received 480000 800000
Standard rent 600000 600000
Repairs 72000 100000
Municipal Tax paid 40000 120000
Insurance Premium 48000 70000
Purpose Let-out Let-out

On 1st April 2022, Ms. Sahana bought residential house for self-
occupation for Rs. 10,00,000 by taking a housing loan in Canara
Bank. Loan amount was Rs. 7,00,000 and rate of Interest 12% p.a
Compute taxable income from House Property for the Assessment
Year 2023-24.
THANK YOU

Dr. Suresh A S
Faculty of Management and Commerce
sureshas@pes.edu

+91 80 66186645