Question 1

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

Accepted Answer

30% standard deduction from annual value is allowed for the purpose of calculating income from house property. This deduction is allowed irrespective of the actual expenditure incurred on the property.

Question 2

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

Accepted Answer

Interest on loan for a self-occupied house taken before 1st April, 1999 is allowed up to `30,000.

Question 3

Deduction allowed from annual value is .

Accepted Answer

All of the options listed are deductions allowed from the annual value of a property for tax purposes. Interest on loans for construction or purchase, interest on loans for repair or renovation, and statutory deductions (a fixed percentage of the annual value) are all permissible deductions under various tax jurisdictions.

Question 4

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

Accepted Answer

The maximum loss that can be shown from a self-occupied residential house property is ₹1,50,000. This limit is set to cap the amount of loss under the head "Income from house property" that can be set off against other heads of income in the same financial year.

Question 5

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

Accepted Answer

Section 23(1) of the Income Tax Act, 1961 defines the Annual Value of a property.

Question 6

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 .

Accepted Answer

When a portion of the house is self-occupied for the full year, the annual value of that portion is considered as nil, and only the proportionate annual value of the rented or non-self-occupied portion is considered for tax purposes.

Question 7

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

Accepted Answer

Actual rent is the rent that is actually being paid for the property. If fair rent is not given, then actual rent can be assumed as fair rent.

Question 8

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

Accepted Answer

Rent received by the original tenant from a sub-tenant is considered as income from other sources for tax purposes. This is because the original tenant does not own the property but is earning income by sub-letting it, which does not fall under income from house property or capital gains.

Question 9

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 .

Accepted Answer

Under Section 24(a) of the Income Tax Act, a standard deduction of 30% of the net annual value is allowed for repairs, insurance, etc., irrespective of the actual amount spent. Therefore, for a net annual value of `1,00,000, the deduction allowed is 30% of `1,00,000 = `30,000.

Question 10

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 .

Accepted Answer

Rent from house property let out by an assessee to his employees when such letting is incidental to his main business is chargeable to tax under the head "profit and gain from business and profession." This is because the activity is considered part of the business operations rather than a separate investment in property for rental income.

Question 11

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

Accepted Answer

When the annual value of a self-occupied house is considered nil, there is no income from that property to deduct expenses from, hence the standard deduction is nil.

Question 12

Gross annual value shall be higher of .

Accepted Answer

Gross annual value is determined by considering the higher of the expected rent or the actual rent received or receivable, thus encompassing both options A and B.

Question 13

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

Accepted Answer

Income from property held under trust for charitable or religious purposes is generally exempted from tax, provided certain conditions specified in the Income Tax Act are met.

Question 14

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

Accepted Answer

For computation of Gross Annual Value in the context of property income, if the actual rent received or receivable is more than the expected rent (fair market value), the actual rent is selected for the calculation. This is because the Gross Annual Value (GAV) is determined based on the higher of the actual rent received or the expected rent, subject to certain conditions and deductions as per tax laws.

Quiz 3: Income From House Property