Chapter:

30+ INCOME FROM HOUSE PROPERTY Solved MCQs

in Business Taxation

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .

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1.	Under the Head Income from House Property, the basis of charge is the of property.
A.	annual value
B.	quarterly value
C.	half-quarterly value
D.	none of the above
Answer» A. annual value

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2.	Mr. Ram owns a house property. He lent it to Laxman at ` 10,000 p.m. Laxman sublet it to Mr. Maruti on monthly rent of ` 20,000 p.m. Rental income of Laxman is taxable under the head .
A.	income from salary
B.	income from other sources
C.	income from house property
D.	income from business
Answer» B. income from other sources

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3.	An individual who transfers house property without an adequate consideration to his owner spouse or to minor child is called as .
A.	co-owner
B.	deemed owner
C.	owner himself
D.	none of the above
Answer» B. deemed owner

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4.	Mr. R owns a house. The Municipal value of the house is ` 50,000. He paid ` 8,000 as local taxes during the year. He uses this house for his residential purposes but lets out half of the house @ ` 3,000 p.m. The annual value of the house is.
A.	15,000
B.	` 16,000
C.	` 17,000
D.	` 18,000
Answer» B. ` 16,000

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5.	If the individual using the property for the business or professional purpose the income taxable under the……………..head.
A.	income from house property
B.	income from huf
C.	income from other
D.	income from business or proprietorship
Answer» D. income from business or proprietorship

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6.	If the assesses let out the building or staff quarters to the employee of business, the rent collected from such employees is assessable as income from .
A.	business
B.	house property
C.	other sources
D.	none of the above
Answer» C. other sources

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7.	Calculate the Gross Annual Value from the following details: Municipal Value ` 45,000 Fair rental value ` 50,000 Standard Rent ` 48,000 Actual Rent ` 42,000
A.	` 50,000
B.	48,000
C.	` 45,000
D.	42,000
Answer» B. 48,000

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8.	Which of the following is not a case of deemed ownership of house property?
A.	transfer to a spouse for inadequate consideration
B.	transfer to a minor child for inadequate consideration
C.	holder of an importable estate
D.	co-owner of a property
Answer» D. co-owner of a property

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9.	,67,000. While computing income from house property, the deduction is allowable to the extent of .
A.	` 30,000
B.	1,00,000
C.	` 1,67,000
D.	` 1,50,000
Answer» D. ` 1,50,000

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10.	Deduction for other expenses except interest in the computation of income from house property is allowable to the extent of .
A.	25% of annual value
B.	10% of annual value
C.	30% of annual value
D.	20% of annual value
Answer» C. 30% of annual value

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11.	Arrear rent is taxable after deducting…………..as per Section 25B of the Income Tax Act, 1961.
A.	30%
B.	35%
C.	10%
D.	20%
Answer» A. 30%

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12.	The value of interest-free concessional loans to employees is determined on the basis of lending rates of for the same purpose.
A.	sbi
B.	` rbi
C.	central government
D.	state government
Answer» D. state government

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13.	Value of rent-free accommodation in case of Government employee shall be taxable up to
A.	15% of employee’s salary
B.	8% of employee’s salary
C.	license fee fixed by government
D.	10% of employee’s salary
Answer» C. license fee fixed by government

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14.	Value of rent-free accommodation or a house owned by employer in case of non-government employees with above 25 lakh population is .
A.	15% of employee salary
B.	7.5% of employee salary
C.	20% of employee salary
D.	10% of employee salary
Answer» A. 15% of employee salary

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15.	Rate of depreciation on residential building is……………..
A.	10%
B.	20%
C.	25%
D.	5%
Answer» D. 5%

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16.	House property held for less than 36 months is .
A.	short-term capital asset
B.	projected capital asset
C.	exempted capital asset
D.	long-term capital asset
Answer» C. exempted capital asset

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17.	Mr. Shushant is the owner of a house, the details of which are given below the gross annual value would be Municipal value ` 36,000 Actual rent ` 32,000 Fair Rent ` 36,000 Standard Rent ` 40,000
A.	` 36,000
B.	35,000
C.	` 30,000
D.	` 40,000
Answer» A. ` 36,000

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18.	Expected rent shall be higher of .
A.	municipal value and standard rent
B.	fair rent and actual rent received
C.	standard rent and fair rent
D.	municipal value and fair rent
Answer» D. municipal value and fair rent

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19.	Interest on capital, borrowed on 10.10.2000, for self-occupied property is deductible up to a maximum amount of .
A.	` 50,000
B.	` 1,50,000
C.	` 5,000
D.	none of the above
Answer» B. ` 1,50,000

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20.	Deduction from annual value is allowed under .
A.	section 24
B.	section 25
C.	section 27
D.	section 28
Answer» A. section 24

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21.	………………..standard deduction from annual value is allowed.
A.	10%
B.	20%
C.	30%
D.	15%
Answer» C. 30%

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22.	Interest on loan for self-occupied house taken before 1st April, 1999 will be allowed up to
A.	` 30,000
B.	` 1,50,000
C.	` 10,000
D.	` 50,000
Answer» A. ` 30,000

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23.	Deduction allowed from annual value is .
A.	interest on loan for constitution
B.	interest on loan for repair
C.	statutory deduction
D.	all of the above
Answer» D. all of the above

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24.	An individual assesses can show maximum loss of …………….from a selfoccupied residential house property.
A.	1,50,000
B.	` 30,000
C.	20,000
D.	` 5,00,000
Answer» A. 1,50,000

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25.	The Annual Value has been defined under of Income Tax Act, 1961.
A.	section 20
B.	section 22
C.	section 23(1)
D.	section 23
Answer» C. section 23(1)

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26.	When the portion of the house is self-occupied for the full year and portion is self-occupied for the whole year, the annual value of the house shall be determined by .
A.	the full annual value of the house the proportionate annual value of selfoccupied portion for the whole year shall be deducted
B.	its present standard value
C.	all of the above
D.	none of the above
Answer» A. the full annual value of the house the proportionate annual value of selfoccupied portion for the whole year shall be deducted

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27.	If fair rent is not gives, then assume………….as fair rent.
A.	actual rent
B.	standard rent
C.	average rent
D.	none of the above
Answer» A. actual rent

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28.	Rent received by original tenant from sub-tenant is taxable under the head
A.	income from house property
B.	income from other sources
C.	income from capital gain
D.	none of the above
Answer» B. income from other sources

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29.	The net annual value of house let out is ` 1,00,000 and actual amount spent by the assessee on repairs and insurance premium is ` 20,000. The amount of deduction allowed under Section 24(a) shall be .
A.	` 35,000
B.	` 45,000
C.	` 30,000
D.	` 25,000
Answer» C. ` 30,000

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30.	Rent from House Property let out by an assessee to his employees when such letting is incidental to his main business will be chargeable to tax under head .
A.	profit and gain from business and profession
B.	income from capital gain
C.	income from house property
D.	all of the above
Answer» A. profit and gain from business and profession

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31.	When annual value of one-self occupied house is nil, the assesses will be entitled to the standard deduction of .
A.	10%
B.	20%
C.	nil
D.	none of the above
Answer» C. nil

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32.	Gross annual value shall be higher of .
A.	expected rent
B.	actual rent received or receivable
C.	all of the above
D.	none of the above
Answer» C. all of the above

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33.	Income from property held under trust for charitable or religious purposes is .
A.	exempted from tax
B.	taxable @ 10%
C.	taxable @ 20%
D.	none of the above
Answer» A. exempted from tax

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34.	For computation of Gross Annual Value, if actual rent is more than expected rent, then we select the .
A.	actual rent
B.	expected rent
C.	any of the above
D.	none of the above
Answer» A. actual rent

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30+ INCOME FROM HOUSE PROPERTY Solved MCQs

Under the Head Income from House Property, the basis of charge is the of property.

Mr. Ram owns a house property. He lent it to Laxman at ` 10,000 p.m. Laxman sublet it to Mr. Maruti on monthly rent of ` 20,000 p.m. Rental income of Laxman is taxable under the head .

An individual who transfers house property without an adequate consideration to his owner spouse or to minor child is called as .

Mr. R owns a house. The Municipal value of the house is ` 50,000. He paid ` 8,000 as local taxes during the year. He uses this house for his residential purposes but lets out half of the house @ ` 3,000 p.m. The annual value of the house is.

If the individual using the property for the business or professional purpose the income taxable under the……………..head.

If the assesses let out the building or staff quarters to the employee of business, the rent collected from such employees is assessable as income from .

Calculate the Gross Annual Value from the following details: Municipal Value ` 45,000 Fair rental value ` 50,000 Standard Rent ` 48,000 Actual Rent ` 42,000

Which of the following is not a case of deemed ownership of house property?

,67,000. While computing income from house property, the deduction is allowable to the extent of .

Deduction for other expenses except interest in the computation of income from house property is allowable to the extent of .

Arrear rent is taxable after deducting…………..as per Section 25B of the Income Tax Act, 1961.

The value of interest-free concessional loans to employees is determined on the basis of lending rates of for the same purpose.

Value of rent-free accommodation in case of Government employee shall be taxable up to

Value of rent-free accommodation or a house owned by employer in case of non-government employees with above 25 lakh population is .

Rate of depreciation on residential building is……………..

House property held for less than 36 months is .

Mr. Shushant is the owner of a house, the details of which are given below the gross annual value would be Municipal value ` 36,000 Actual rent ` 32,000 Fair Rent ` 36,000 Standard Rent ` 40,000

Expected rent shall be higher of .

Interest on capital, borrowed on 10.10.2000, for self-occupied property is deductible up to a maximum amount of .

Deduction from annual value is allowed under .

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

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

Deduction allowed from annual value is .

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

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

When the portion of the house is self-occupied for the full year and portion is self-occupied for the whole year, the annual value of the house shall be determined by .

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

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

The net annual value of house let out is ` 1,00,000 and actual amount spent by the assessee on repairs and insurance premium is ` 20,000. The amount of deduction allowed under Section 24(a) shall be .

Rent from House Property let out by an assessee to his employees when such letting is incidental to his main business will be chargeable to tax under head .

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

Gross annual value shall be higher of .

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

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

Mr. Ram owns a house property. He lent it to Laxman at ` 10,000 p.m.
Laxman sublet it to Mr. Maruti on monthly rent of ` 20,000 p.m. Rental
income of Laxman is taxable under the head .

Mr. R owns a house. The Municipal value of the house is ` 50,000. He paid `
8,000 as local taxes during the year. He uses this house for his residential
purposes but lets out half of the house @ ` 3,000 p.m. The annual value of
the house is.

If the assesses let out the building or staff quarters to the employee of
business, the rent collected from such employees is assessable as income
from .

Calculate the Gross Annual Value from the following details: Municipal
Value ` 45,000
Fair rental value ` 50,000 Standard Rent ` 48,000 Actual Rent ` 42,000

Mr. Shushant is the owner of a house, the details of which are given below
the gross annual value would be Municipal value ` 36,000 Actual rent `
32,000 Fair Rent ` 36,000 Standard Rent ` 40,000

When the portion of the house is self-occupied for the full year and portion
is self-occupied for the whole year, the annual value of the house shall be
determined by .

The net annual value of house let out is ` 1,00,000 and actual amount spent
by the assessee on repairs and insurance premium is ` 20,000. The amount
of deduction allowed under Section 24(a) shall be .

Rent from House Property let out by an assessee to his employees when
such letting is incidental to his main business will be chargeable to tax
under head .