Income from House Property MCQ | 30 Free MCQs

21. Municipal valuation of the house is 1,20,000 fair rent of 1,40,000 and actual rent received or receivable is 1,25,000. The gross annual value, in this case, shall be assuming that a reduction in rent is not due to vacancy.
a) 1,25,000
b) 1,25,000
c) 1,40,000
d) None of the above

22. A house property with fair rent of 1,00,000 is neither let out nor self-occupied throughout the previous year. Its annual value shall be.
a) 1,00,000
b) Nil
c) 85,000
d) None of the above

23. Mandan has taken a house on rent and sublets the same to Anil. Income from such house property shall be taxable under the head.
a) Income from house property
b) Income from other sources
c) Business Income
d) None of the above

24. Un realized rent is deducted from. ………….
a) Gross annual value
b) Net annual value
c) Municipal Value
d) None of the above

25. A property is owned by co-owners and it is self-occupied house property. In this case, interest on money borrowed after 1-4-1999 for acquiring the house shall be allowed.
a) To the extent of Rs 2,00,000 as the case may be for the total property income.
b) To each co-owner, to the extent of Rs 2,00,000 as the case may be
c) No deduction of interest shall be allowed.
d) None of the above.

26. A has two house properties. Both are self-occupied. The Gross annual value of…………
a) Both houses shall be nil
b) One house shall be nil
c) No house shall be nil
d) None of the above

27. An assessee has borrowed money for the purchase of a house property & Interest is paid outside India. Such interest shall:
a) Be allowed as deduction
b) Not to be allowed as deduction
c) Be allowed as deduction if the tax is deduction at source
d) None of the above

28. Municipal tax is deducted from …………….
a) Net Annual Value
b) Gross Annual Value
c) Municipal Valuation
d) None of the above

29. In case the property is owned by co-owners and it is self occupied by all co-owners . The annual value of ……………
a) Such house property be nil
b) For each co-owners shall be nil
c) Only for co-owner will be nil
d) None of the above

30. Municipal Tax paid is allowed as a deduction for …………….
a) SOP only
b) LOP only
c) LOP and DLOP
d) All of the above

Answer: 21)1,40,000 22)1,00,000 23)Income from other sources 24)Gross annual value 25)To each co-owner, to the extent of Rs2,00,000 as the case may be 26)One house shall be nil 27)Be allowed as deduction if the tax is deduction at source 28)Gross Annual Value 29)For each co-owners shall be nil 30)LOP and DLOP