Income from House Property
T.Y.BCOM | Direct Taxation
2025-26
PRACTICAL QUESTIONS:
1) Mr. Gharwala owns 4 houses let to different tenants details of which are as follows. Determine
the Annual Value of each house.
Particulars 1 2 3 4
Municipal Valuation 90,000 90,000 90,000 90,000
Fair Rent ( Rent of Similar 1,40,000 1,10,000 1,10,000 1,40,000
Property)
Standard Rent under Rent
1,20,000 1,20,000 1,20,000 1,20,000
Control Act
Actual Rent per month
12,000 8,000 12,000 12,000
Months let out
12 12 11 9
Months vacant
NIL NIL 1 3
2) Mr. X took a loan of Rs 1,00,000 @15% interest p.a. from H.D.F.C. on 1-4-2020 for the purpose
ofthe construction of his house. The house was completed on 20-3-2025. Calculate the
deductible amount of interest from the annual value for the previous year 2025-26 if the house
is let out.
3) Mr. Mehra owns a house in Delhi, which is let-out. Fair rent of the house is Rs. 24,000 whereas
actual rent received is Rs. 30,000. He also received Rs. 10,000 from the tenant for charges
towards lift, generator and security. He makes the following expenditure in respect of the house
property -
Particulars Amount Particulars Amount
Municipal Taxes paid by Mehra 4,000 Repairs 2,000
Fire Insurance 2,400 Land Revenue 3,800
Collection charges 500 Ground Rent Paid 2,000
Interest on borrowed capital during the previous year 2024-25 is Rs. 4,000. Funds borrowed on April
1, 2021, Rs. 40,000 @ 10% interest p.a. were used for construction of the house which was
completed on March 31, 2025. Compute the income earned by Mr. Mehra from his let-out house
property during the assessment year 2025-26.
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T.Y.BCOM | Direct Taxation
2025-26
4) Compute the Income from House Property from the following particulars in respect of a new
property owned by M which was let out from 1-4-2019 onwards:
Particulars Amount
Fair Rent 60,000
Actual rent receivable 7,500 pm
Rent actually received (for 10 months only due to vacancy period of 2 months) 75,000
Municipal taxes paid (including arrears for earlier years) 14,400
Interest on borrowal paid during the year 23,000
Interest on borrowal paid prior to 1-4-2020 20,000
Collection charges 3,400
Unrealised rent claimed as deduction in earlier year, but received during the year 2024- 11,000
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Arrears of rent for earlier years received during the year
8,000
Expenditure on repairs to property
3,000
Ground rent paid
4,500
Insurance premium paid, relating to the property
2,200
Expenditure incurred on collecting unrealised rent
3,500
5) M has a residential property, details of which are given below:
Particulars Amount
Municipal Valuation 1,00,000
Fair Rent P.m 15,000
Standard Rent P.m 9,600
Municipal taxes paid @20% of Municipal Valuation
Interest on loan for purchase of this house 20,000
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T.Y.BCOM | Direct Taxation
2025-26
Rent Receivable pm 10,000
The house property was vacated by the tenant on the last day of October, 2024. It could then be
let out only from 1st January, 2025 at Rs. 14,000 p.m. Rent for March 2022 could not be realised
(the conditions under relevant income-tax rules were satisfied). Compute his income from house
property for the assessment year 2025-26.
6) X has a house in Mumbai, which he used for his own residence in the previous year 2023-24.
Due to his transfer to Nagpur, he could not occupy this house in the previous year 2024-25. He
stays in a rented house in Nagpur. Following further information is available in connection with
Mumbai house.
Particulars Rs.
1) Reasonable letting value of Mumbai house 36,000
2) Repairs expenditure 1,000
3) Interest for above house (loan taken in March, 1999) 30,970
Calculate house property income of Mr. X assuming that X has derived no benefit from Mumbai
house during the assessment year 2025-26.
7) Mr Manas owns two properties one at Mumbai, wherein his family resides and the other at
Delhi, which is unoccupied. He lives in Chandigarh for his employment purposes in a rented
house. For acquisition of house property at Mumbai, he has taken a loan of 30 lakh @ 10% p.a.
on 1-4-2023. He has not repaid any amount so far. In respect of house property at Delhi, he has
taken a loan of 5 lakh @ 11% p.a. on 1-10-2023 towards repairs. Compute the deduction which
would be available to him under section 24(b) for A.Y. 2025-26 in respect of interest payable on
such loan.
8) Mr. Tapan Guha owns 4 houses, House I, II & III are self-occupied and house IV is let out.
Compute his income from house property with the help of following information:
Particulars I (S.O.P.) II (S.O.P.) III (S.O.P.) IV (L.O.P.)
Standard Rent 15,000 20,000 45,000 N.A.
Fair Rent 20,000 18,000 25,000 30,000
Actual Rent - - 40,000 32,000
Municipal Rateable Value 14,000 21,000 30,000 21,000
Municipal Taxes paid by Mr. Guha 2,000 3,000 3,500 3,500
Fire Insurance Premium 400 500 500 800
Expenditures on Repairs 10,000 - 4,000 200
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T.Y.BCOM | Direct Taxation
2025-26
Year of Completion of Construction 1988 1996 1993 1994
Repairs undertaken by tenant - - - 900
9) B, owns a building consisting of three identical units whose construction was completed on
March 31, 2024. The building was occupied from April 1, 2024 onwards. The particulars
pertaining to the three units for the year ended March 31, 2025 are given below:
Particulars Unit I Unit II Unit III
Fair rent 60,000 60,000 60,000
Rent received - 72,000 -
Municipal taxes:
- paid 3,000 5,000 3,000
- due but not yet paid 3,000 5,000 3,000
Land revenue due but 1,200 1,200 1,200
outstanding
Ground rent due, not yet
2,400 2,400 2,400
paid
Nature of occupation: Unit I - Self occupied for residence; Unit II - Let out for residence; Unit III -
Used for own business.
On April 1, 2022 he had borrowed a sum of 5,00,000 bearing interest at 12 per cent per annum
for construction of this building. The total cost of construction of the building - 12,00,000.
Compute the income from house property of B for the assessment year 2025-26.
