Welcome to Income from House property MCQs.

DATE : March 31, 2023.

Note : All Questions are compulsory.

Correct Answer : 2 points; Incorrect Answer : - 1 point ( Lets make it tough).

Choose incorrect statement from below:

Arrear of rent is taxable in the year of receipt.

Standard deduction @ 30% is allowed from arrear of rent received.

Arrear of rent is not taxable if assessee is not the owner of the property in the year of receipt.

A) Annual value can not be negative.

B) Income from house property can be negative.

True or False??

A) True B) False

A) False B) True

A) False B) False

A) True B) True

In case property held as stock-in-trade, the annual value of such property shall be NIL. This benefit would be available for the period upto ______ from the end of the financial year in which certificate of completion of the property is obtained.

One Year

Two Year

Three Year

Five Year

Mr Thanos has taken a house property on lease for 15 years from Mr. Stan lee in India, later he let out the same to Miss Nebula. Income from such house property shall be taxable in the hands of :

Mr. Thanos under the head “Income from House Property"

Mr. Stan lee under the head “Income from House Property"

None of the above because income for such property will be taxed in the hand of Mr. Thanos as Income from Other sources.

Municipal Value – 90,000, Fair Rent – 80,000, Standard Rent 70,000 Actual Rent Received – Rs. 6,000 pm, tenant vacated the property on 31 January 2018. Compute Gross Annual Value.

Rs. 60,000

Rs. 80,000

Rs. 90,000

Rs. 70,000

Vacant ground lease rent is taxable :

Income from house property

Income form Business

Income from other sources or business income as the case may be.

Exempted

Mr. Rohit received Rs. 2,00,000 in March 2018 towards recovery of unrealized rent. Legal expenses incurred Rs. 40,000. Compute taxable amount under section 25A for AY 2018-19.

Rs. 1,60,000

Rs. 2,00,000

Rs. 1,40,000

Rs. 1,12,000

Case 1) Gross annual value – Rs. 1,50,000 for AY 2018-19, Municipal tax of Rs. 18,000 was paid on 4th april 2018.

Case 2) Gross annual value – Rs. 1,50,000 for AY 2018-19, Municipal tax of Rs. 18,000 was paid on 4th April 2017.

Net annual value for AY 2018-19??

Case 1) Rs. 1,50,000 Case 2) Rs. 1,50,000

Case 1) Rs. 1,32,000 Case 2) Rs. 1,50,000

Case 1) Rs. 1,50,000 Case 2) Rs. 1,32,000

Case 1) Rs. 1,32,000 Case 2) Rs. 1,32,000

In case property situated outside India, and Municipal taxes paid on that property, such taxes are not deductible from gross annual value.

True False

10.

Loan taken on 1st april 2015 – Rs 5,00,000 @ 10% pa. Construction completed in the month of 31st March 2018. What shall be the amount of deduction u/s 24 on account of interest on borrowed capital for AY 2018-19?

Rs. 70,000

Rs. 50,000

Rs. 1,50,000

Rs. 30,000

11.

Property is used by the assessee for the purpose of any business or profession carried on by him is chargeable to Income tax under the the head Income from house property after claiming deduction under section 24.

True False

12.

Mr. Dhoni gifted property to his wife and to his minor daughter, Mrs. Dhoni let out both the property @ Rs. 20,000 and Rs. 25,000 and rent receives by her only. The income from both the house property will be taxable in the hand of :

Mrs Dhoni only – Rs. 45,000 ( As rent receives by her only)

Mrs Dhoni – Rs 20,000 and Rs. 25,000 as Minor Daughter income

Mrs Dhoni – Rs. 20,000 and Mr. Dhoni – Rs. 25,000 (as deemed owner for property gifted to minor child)

Mr. Dhoni only (as Deemed owner for both property)

13.

Mr Kohli, ordinarily resident individual in india, received rental income from property situated in London but such income is not brought into India.

Rental Income is not taxable in India.

Rental income is taxable in India.

14.

Case 1) Interest on borrowed capital for self occupied house was payable Rs. 2,00,000 during previous year but actually paid only Rs. 1,20,000 during previous year.

Case 2) Interest on borrowed capital for self occupied house was paid during previous year. Amount – Rs. 2,10,000.

Allowable deduction under section 24??

Case 1)Rs. 1,20,000 Cae 2) Rs. 2,10,000

Case 1) Rs. 2,00,000 Cae 2) Rs. 2,00,000

Case 1) Rs. 2,00,000 Cae 2) Rs. 2,10,000

Case 1) Rs. 1,20,000 Cae 2) Rs. 2,10,000

15.

In case of let out property, choose the deductions which are allowed under section 24.

(may select multiple option)

Insurance premium Paid

Society Charges

Annual maintainance charges

Standard deduction of 30%

Interest on money borrowed

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Income from House property