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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