Income From House Property

1. (i) A borrowed a sum of ₹ 5,00,000 @ 13% p.a. on 1.4.2016 for construction of a house which was completed on 15.3.2020. What amount of deduction is available on account of interest for AY 2025-26?

a) ₹ 96,000

b) ₹ 65,000

c) ₹ 1,08,000

d) None of the above

None

(ii) What shall be the deduction on account of interest for AY 2025-26 if the loan is repaid on 31.8.2023?

a) ₹ 25,000

b) Nil

c) ₹ 65,000

d) ₹ 30,000

None

None

2. Deduction u/s 24(b), if the house is self-occupied

a) ₹ 30,000

b) ₹ 2,00,000

c) ₹ 2,88,000

d) ₹ 1,20,000

None

3. Deduction u/s 24(b), if the house is let out:

a) ₹ 1,50,000

b) ₹ 30,000

c) ₹ 2,88,000

d) ₹ 1,20,000

None

4. Vidya received ₹ 90,000 in May 2024 towards recovery of unrealised rent, which was deducted from actual rent during PY 2022-23 for determining annual value. Legal expenses in relation to unrealized rent are ₹ 20,000. Amount taxable u/s 25A for AY 2025-26 would be:

a) ₹ 70,000

b) ₹ 63,000

c) ₹ 60,000

d) ₹ 49,000

None

5. Ganesh and Rajesh are co-owners of a self-occupied property. They own 50% share each. The interest paid by each co-owner during the previous year on loan (taken for acquisition of property during the year 2005) is ₹ 2,05,000. The amount of allowable deduction in respect of each co-owner is:

a) ₹ 2,05,000

b) ₹ 1,02,500

c) ₹ 2,00,000

d) ₹ 1,00,000

None

6. In respect of loss from house property, which of the following statements are correct?

a) While computing income from any house property, the maximum interest deduction allowable u/s 24 is ₹ 2 lakhs

b) Loss from house property relating to a particular year can be set-off against income under any other head except casual income during that year only to the extent of ₹ 2 lakhs

c) The loss in excess of ₹ 2 lakhs, which is not set-off during the year, can be carried forward for set-off against any head of income in the succeeding year(s)

d) All of the above

None

7. Mr P has a house property in Delhi whose municipal value is ₹ 1,00,000 and the FRV is ₹ 1,20,000. The standard rent is fixed at ₹ 1,08,000. It was self-occupied by Mr P from 01.04.2024 to 31.07.2024. Wef 01.08.2024, it was let out at ₹ 10,000 per month. Compute the net annual value of the house property for AY 2025-26 if the municipal taxes paid by him during the year were ₹ 20,000.

a) ₹ 1,00,000

b) ₹ 88,000

c) ₹ 60,000

d) ₹ 1,08,000

None

8. Mr Sujal and his brother jointly own a bungalow. They had taken a housing loan to purchase the bungalow. The loan is sanctioned in the name of Mr Sujal and his brother in the year 2020. Interest on housing loan for PY 2024-25 amounted to ₹ 5L which is paid by Mr Sujal (₹ 2.5L) and his brother (₹ 2.5L). The bungalow is used by them for their residence. In this case, what will be the amount of deduction available u/s 24(b) to Mr Sujal and his brother?

a) ₹ 30,000 each

b) ₹ 2,00,000 each

c) ₹ 2,50,000 each

d) ₹ 5,00,000 each

None

9. Mr Agarwal moved to Mumbai. He took a property on rent for his residential purpose. However, the property was not fully occupied by him. He let out the property to his friend at ₹ 15,000 p.m. from 01.04.2024 to 31.03.2025. Mr Agarwal is of the view that income from subletting of property is taxable as income from house property. As tax advisor of Mr Agarwal, find out whether his view is correct?

a) Correct, as any income from a house property is taxable under the head income from house property.

b) Incorrect, as Mr Agarwal is not the owner of the property let out by him. The income from sub-letting shall be taxable under the head profits and gains of business or profession.

c) Incorrect, as Mr Agarwal is not the owner of the property let out by him. The income from sub-letting shall be taxable under the head income from other sources.

d) Correct, as income from sub-letting of a property is directly attributable to the property itself and hence, chargeable to tax as income from house property.

None

10. Mr Raghav has three houses for self-occupation. What would be the tax treatment for AY 2025-26 in respect of income from house property?

a) One house, at the option of Mr Raghav, would be treated as self-occupied. The other two houses would be deemed to be let out.

b) Two houses, at the option of Mr Raghav, would be treated as self-occupied. The other house would be deemed to be let out.

c) One house, at the option of Assessing Officer, would be treated as self-occupied. The other two houses would be deemed to be let out.

d) Two houses, at the option of Assessing Officer, would be treated as self-occupied. The other house would be deemed to be let out.

None

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Topic- Income From House Property (Sections 22 to 27)

Topic-
Income From House Property
(Sections 22 to 27)