Deck 3: Income From House Property

Question 1

Under the Head Income from House Property, the basis of charge is the of property.

A)annual value
B)quarterly value
C)half-quarterly value
D)none of the above

Answer 1

annual value

Question 2

Mr. Ram owns a house property. He lent it to Laxman at ` 10,000 p.m.Laxman sublet it to Mr. Maruti on monthly rent of ` 20,000 p.m. Rentalincome of Laxman is taxable under the head .

A)income from salary
B)income from other sources
C)income from house property
D)income from business

Answer 2

income from other sources

Question 3

An individual who transfers house property without an adequate consideration to his owner spouse or to minor child is called as .

A)co-owner
B)deemed owner
C)owner himself
D)none of the above

Answer 3

deemed owner

Question 4

Mr. R owns a house. The Municipal value of the house is ` 50,000. He paid `8,000 as local taxes during the year. He uses this house for his residentialpurposes but lets out half of the house @ ` 3,000 p.m. The annual value ofthe house is.

A)15,000
B)` 16,000
C)` 17,000
D)` 18,000

Question 5

If the individual using the property for the business or professional purpose the income taxable under the……………..head.

A)income from house property
B)income from huf
C)income from other
D)income from business or proprietorship

Question 6

If the assesses let out the building or staff quarters to the employee ofbusiness, the rent collected from such employees is assessable as incomefrom .

A)business
B)house property
C)other sources
D)none of the above

Question 7

Calculate the Gross Annual Value from the following details: MunicipalValue ` 45,000Fair rental value ` 50,000 Standard Rent ` 48,000 Actual Rent ` 42,000

A)` 50,000
B)48,000
C)` 45,000
D)42,000

Question 8

Which of the following is not a case of deemed ownership of house property?

A)transfer to a spouse for inadequate consideration
B)transfer to a minor child for inadequate consideration
C)holder of an importable estate
D)co-owner of a property

Question 9

,67,000. While computing income from house property, the deduction is allowable to the extent of .

A)` 30,000
B)1,00,000
C)` 1,67,000
D)` 1,50,000

Question 10

Deduction for other expenses except interest in the computation of income from house property is allowable to the extent of .

A)25% of annual value
B)10% of annual value
C)30% of annual value
D)20% of annual value

Question 11

Arrear rent is taxable after deducting…………..as per Section 25B of the Income Tax Act, 1961.

A)30%
B)35%
C)10%
D)20%

Question 12

The value of interest-free concessional loans to employees is determined on the basis of lending rates of for the same purpose.

A)sbi
B)` rbi
C)central government
D)state government

Question 13

Value of rent-free accommodation in case of Government employee shall be taxable up to

A)15% of employee's salary
B)8% of employee's salary
C)license fee fixed by government
D)10% of employee's salary

Question 14

Value of rent-free accommodation or a house owned by employer in case of non-government employees with above 25 lakh population is .

A)15% of employee salary
B)7.5% of employee salary
C)20% of employee salary
D)10% of employee salary

Question 15

Rate of depreciation on residential building is……………..

A)10%
B)20%
C)25%
D)5%

Question 16

House property held for less than 36 months is .

A)short-term capital asset
B)projected capital asset
C)exempted capital asset
D)long-term capital asset

Question 17

Mr. Shushant is the owner of a house, the details of which are given belowthe gross annual value would be Municipal value ` 36,000 Actual rent `32,000 Fair Rent ` 36,000 Standard Rent ` 40,000

A)` 36,000
B)35,000
C)` 30,000
D)` 40,000

Question 18

Expected rent shall be higher of .

A)municipal value and standard rent
B)fair rent and actual rent received
C)standard rent and fair rent
D)municipal value and fair rent

Question 19

Interest on capital, borrowed on 10.10.2000, for self-occupied property is deductible up to a maximum amount of .

A)` 50,000
B)` 1,50,000
C)` 5,000
D)none of the above

Question 20

Deduction from annual value is allowed under .

A)section 24
B)section 25
C)section 27
D)section 28

Question 21

………………..standard deduction from annual value is allowed.

A)10%
B)20%
C)30%
D)15%

Question 22

Interest on loan for self-occupied house taken before 1st April, 1999 will be allowed up to

A)` 30,000
B)` 1,50,000
C)` 10,000
D)` 50,000

Question 23

Deduction allowed from annual value is .

A)interest on loan for constitution
B)interest on loan for repair
C)statutory deduction
D)all of the above

Question 24

An individual assesses can show maximum loss of …………….from a selfoccupied residential house property.

A)1,50,000
B)` 30,000
C)20,000
D)` 5,00,000

Question 25

The Annual Value has been defined under of Income Tax Act, 1961.

A)section 20
B)section 22
C)section 23(1)
D)section 23

Question 26

When the portion of the house is self-occupied for the full year and portionis self-occupied for the whole year, the annual value of the house shall bedetermined by .

A)the full annual value of the house the proportionate annual value of selfoccupied portion for the whole year shall be deducted
B)its present standard value
C)all of the above
D)none of the above

Question 27

If fair rent is not gives, then assume………….as fair rent.

A)actual rent
B)standard rent
C)average rent
D)none of the above

Question 28

Rent received by original tenant from sub-tenant is taxable under the head

A)income from house property
B)income from other sources
C)income from capital gain
D)none of the above

Question 29

The net annual value of house let out is ` 1,00,000 and actual amount spentby the assessee on repairs and insurance premium is ` 20,000. The amountof deduction allowed under Section 24(a) shall be .

A)` 35,000
B)` 45,000
C)` 30,000
D)` 25,000

Question 30

Rent from House Property let out by an assessee to his employees whensuch letting is incidental to his main business will be chargeable to taxunder head .

A)profit and gain from business and profession
B)income from capital gain
C)income from house property
D)all of the above

Question 31

When annual value of one-self occupied house is nil, the assesses will be entitled to the standard deduction of .

A)10%
B)20%
C)nil
D)none of the above

Question 32

Gross annual value shall be higher of .

A)expected rent
B)actual rent received or receivable
C)all of the above
D)none of the above

Question 33

Income from property held under trust for charitable or religious purposes is .

A)exempted from tax
B)taxable @ 10%
C)taxable @ 20%
D)none of the above

Question 34

For computation of Gross Annual Value, if actual rent is more than expected rent, then we select the .

A)actual rent
B)expected rent
C)any of the above
D)none of the above