Categories B.COMECO-11: ELEMENTS OF INCOME TAXIGNOUIGNOU ASSIGNMENTS

COMPUTATION OF TAXABLE INCOME OF HOUSE PROPERTY

Question 4. From the following information of Mr. Sunil, compute the taxable income of house property:

Particular Amount
(i) Municipal Valuation 3,30,000
(ii) Fair Rent 3,60,000
(iii) Standard Rent under Rent Control Act 3,36,000
(iv) Unrealised rent of previous year 2011-12 (Conditions of Rule 4 satisfied) previous year 2011-12 30,000
(v) Rent realized in year 2014-15 from Unreaslised Rent of previous year 2011-12 24,000
(vi) House was let at Rs. 30,000 p.m.
(vii) Rent Unrealised of the eyar 2015-16 30,000

 

Solution:

Computation of Taxable House Property Income of Mr. Sunil

for the Previous Year 2015-16 i.e. Assessment Year 2016-17

Particulars Amount in Rs.
Municipal Value 3,30,000
Fair Rent 3,60,000
Standard Rent 3,36,000
Expected Rent 3,36,000
Actual Rent 3,60,000
Gross Annual Value 3,60,000
Less: Unrealized Rent of previous year 2015-16* (30,000)
Add:  Recovery of Unrealized Rent of previous year 2011-12** 24,000
Less: Municipal Taxes Nil
Net Annual Value 3,54,000
Less: Deduction u/s

24(a) : Statutory Deduction @ 30%

 

(1,06,200)

          24(b) : Interest Nil
Taxable House Property Income 2,47,800

 

* It has been assumed that conditions of rule 4 has been satisfied.

** In the absence of Information it has been assumed that unrealized rent was reduced while calculation GAV in previous year 2011-12.

 

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