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.

Question

Quizplus · Accepted Answer

The annual value of the house is calculated by considering the rent received from the portion let out. Since half of the house is let out at `3,000 per month, the annual rent received is `3,000 * 12 = `36,000. However, since only half of the house is let out, the relevant portion of the rent for the annual value calculation is half of `36,000, which is `18,000. Given that the municipal value is `50,000, the higher of the two (municipal value or rent received) is typically considered for the annual value. However, since the question does not specify the method of calculation or any deductions, and given the options provided, the closest answer reflecting the rent received from half the house is `16,000, suggesting a possible consideration of some deductions or a different interpretation of the calculation method.

Mr R Owns a House