X owns two rental properties in Bombay and Chennai. The document provides details on the rental income and expenses for each property for the assessment year 2011-2012. It also provides information on a third property owned by Parag and requests the taxable income be calculated. Finally, it lists several other scenarios involving rental properties and requests the income from house property be determined for each case.

1. Income from House Property
1. ‘X’ is the owner of a house property in Bombay. Municipal Valuation of the property
– Rs.45,000, Fair rent – Rs.47,500, Standard rent – Rs.50,000. The property
consisting of 2 units is occupied by 2 tenants who pay a rent of Rs.21,500 each.
Construction of the property was commenced on March 1, 1989 and was completed
on October 1, 1991. The property was let out from November 1, 1991. Municipal Tax
imposed on the property by the Municipal Corporation was Rs.15,600. 75% of
Municipal taxes are borne by the owner and 25% by the tenants. Amount paid by X
during the previous year 2010-2011 is Rs.6,700. Determine the income from house
property for the assessment year 2011-2012
2. ‘X’ owns a house at Chennai (Municipal Value Rs.28,000, Fair Rental Value –
Rs.26,500, Standard Rent – Rs.27,000). During the previous year the house was let
out from 1.4.2010 to 31.8.2010 and from 1.11.2010 onwards on a monthly rent of
Rs.2,500. (It was unoccupied from 1.9.2010 to 31.10.2010).
Expenses incurred are as follows:
a. Municipal Taxes 12% of Municipal Rental Value
b. Repairs Rs.1,200
c. Collection Charges Rs.1,000
d. Fire Insurance Rs.2,500
e. Land Revenue Rs.4,150
f. Interest on borrowed capital (Rs.60,000 is borrowed on August 1st , 2003 @ 16% p.a.,
construction of house is completed on May 31st, 2005) for the year 2010-11 Rs.9,600 (Loan
is still unpaid).
Calculate the Income Chargeable to Tax
3. For the assessment year 2011-2012, X submits the following information.
Income from business Rs.27,000
Interest on non-government securities Rs.4,000
Property Income House 1 House 11
Municipal Valuation 20,000 25,000
Rent Receivable 25,000 36,000
Municipal Taxes Paid 2,400 2,700
Repairs 400 1,600
Collection Charges 500 600
Land Revenue Paid 1,400 2,250
Insurance Premium 1,700 3,275
Unrealized Rent of 2010-11 1,400 1,500
Date of Completion of Construction January 31, 1992 December 31, 1991
Determine the taxable income and tax liability of X for the assessment year 2011-
2012 (Both the houses are let out for residential purpose). He also contributes
Rs.2,000 towards home loan account of National Housing Bank.
4. Parag owns a house at Mumbai, the details of which are provided below:
Municipal value Rs.24,000
Fair rent Rs.22,000

2. The house is let out for residential purposes on monthly rent of Rs.2,500 from April 01,
2010 to May 31, 2010 and January 01, 2011 to March 31, 2011.
The house is Vacant for the remaining part of the previous year 2010-2011.
Parag incurs the following expenses with respect to the house property in the year 2010-
2011 :
Particulars Amount (Rs.)
Municipal taxes 4,000
Repairs 1,000
Fire insurance premium 2,500
Land revenue 4,600
Parag borrowed Rs.1,20,000 (which is still unpaid) on April 01, 2005 @ 20% p.a. Interest
on borrowed capital for the year 2010-2011 is Rs.24,000. Construction of the house is
completed on April 01, 2006.
Income of Parag from other sources is Rs.96,000.
You are required to determine the taxable income of Parag for the assessment year 2011-
2012.
5. Jayesh owns a house having two residential units. The construction of the house was
completed on 1st April 2011. These two units are A & B and the relevant particulars
are as follows
A B
Self Occupied Let Out
Area occupied 1/3 2/3
Municipal Rateable Value 85000 110000
Municipal Taxes paid 2500 5000
Land Revenue 1200
Interest on Loan Taken for constructing house 24000
Collection Expenses 500
Unit B was vacant upto 30th June 2011
Give the income from house property for the year 2012 – 13
6. Amit owns a big house whose construction was completed on 1st July, 2011. He had
borrowed Rs. 10 lacs on 1-7-2008 @ 9% interest. ½ of the house was let out @
20,000 p.m. This portion was vacant for a period of 3 months. ¼ of the house was
used by the owner for residence and ¼ for the business for full year.
Other expenses are as follows
Municipal Taxes Rs. 10,000
Repairs Rs. 5000
Calculate the income from House Property for the year 2012 – 13

3. 7. Vijay owns the following properties
Residential
Bungalow
Shop Go down
Fair Rental Value 70,000 30,000 20,000
Municipal Tax 12,600 4050 1800
Let out for annual
75000 24000 21000
rent
Interest on
borrowing for
construction
16000 8000 10000
Wealth Tax 200 50 80
Compute the taxable “Income from House Property for A.Y. 2012 – 13.
8. Mr. Ram & Mr. Shyam are equal co – owners of two residential houses. House A is
occupied by them and House B is let out to a person on rent basis
Following are the details for the A.Y. 2012 – 13
Particulars House A House B
Reasonable Letting Value 250000 320000
Actual Rent 25000 p.m.
Municipal Valuation 200000 200000
Municipal Taxes 10% of Municipal
Valuation
10% of Municipal
Valuation
Interest on Housing Loan 75000 75000
Insurance 10000 10000
Determine the income from House Property