Shri Ramesh is the owner of two houses.

He has furnished the following particulars for the Financial Year 2017-
18:

First House- Its municipal valuation is INR 40,000. It is used by Ramesh for his own residence. He paid INR 200
Fire Insurance Premium and INR 4,000 Municipal Tax. He also paid interest on loan of INR 20,000. This loan
was taken to repay another loan taken for the construction of this house.

Second House- Its municipal valuation is INR 24,000 and Standard Rent is INR 30,000 (Rent Control Act
applicable). It has been let out at INR 3,000 per month. He made the following payments:

INR

Municipal Tax 6,000

Repairs 1,000

Land Revenue 200

Legal expenses incurred to get house vacated 500

Annual Charge 3,000

This house remained vacant for 2 months. INR 9,000 could not be recovered from the defaulting tenant. The
tenant has vacated the house. The conditions of Rule 4 are satisfied.

Compute his taxable income from house property for the A.Y. 2018-19.

M, a resident of Delhi, owns two houses, particulars of which are as below:

I II

(INR) (INR)

Standard Rent under the Rent Control Act 76,000 72,000

Municipal Valuation 80,000 90,000

Fair Rent 1,00,000 1,20,000

Defacto Rent ---- 90,000

Municipal Taxes paid during previous year 12,000 14,500

Fire insurance premium 1,000 9,000

Water benefit tax (due but outstanding) 1,200 1,500

Interest on loan taken to construct the house 45,000 11,500

Rent of lease (due but outstanding) 1,500 1,500

Use of the asset Self-occupied Rented for

Residence

Ascertain the taxable income of M for the A.Y. 2018-19 from the head ‘House Property’. House no I was
constructed in Feb., 2018 whereas house no II in 2008.
From the following information compute Annual Value of the properties for the A.Y. 2018-19:

Properties (Amounts in INR)

I II III IV V

Fair Rent 30,000 25,000 28,000 --- ---

Municipal Valuation 25,000 27,000 29,000 25,000 26,000

Rent Recd (De facto) 28,800 30,000 27,600 30,000 2,000 pm

Standard Rent --- --- --- 24,000 27,000

Municipal Tax Paid P.Y 2017-18 P.Y 2016-17 P.Y. 2017-18 Not Paid 1,400 for

2,500 & 2017-18 & 2018-19 6 months

5,400 5,800

Date of completion --- --- --- --- 1.10.2017

Of construction