1. Income from House property By Prof. Augustin Amaladas M.Com., AICWA.,PGDFM., B.Ed. Education for all St. Joseph’s College of Commerce, 163, Brigade Road, Bangalore India Learn Management Accounting Learn Income tax www.augustin.co.nr Costing, Auditing Free web, freely downloadable International Finance Financial Management Merger and Acquisition, demerger For B.com., BBM., M.Com. CA., ICWA, CS, CFA students

2. INCOME FROM HOUSE PROPERTY

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7. INCOME FROM HOUSE PROPERTY Taxed on “Notional Basis” Give to others especially knowledge without expectation

26. Un realised rent realised Belong to Assessment year 2001-02 Earlier(Sec.25A) Belong to After assessment year 2001-02 (Sec.25AA) Fully taxable Expenditure in relation to Such collection is not deductible (Amount collected- 30% of amount collected) Taxable

50. Exercise 2(let out and part of the year rented and sold later) X owns a house property (municipal valuation: Rs. 145000, fair rent : Rs 130000, standard rent : Rs. 124000). It is let out throughout the previous year (rent being Rs. 8000 per month up to November 15, 2007 and Rs. 14000 per month thereafter). The property is transferred by X to Y on January 31, 2008. Find out the gross annual value in the hands of Y for the assessment year 2008-09.

51. Solution 2 Computation of gross annual value for ( Y ): Rs ( in thousands ) Municipal value from 1-02-2008 to 31-03-2008 ( 145000/12 x 2) 24167 Fair rent from 1-2-2008 to 31-3-2008 (130000/12 x 2) 21667 Whichever is higher 24167 Standard rent (124000/12 x 2) 20667 Whichever is lower(Expected rent) 20667 Annual rent (14000 x 2) 28000 Whichever is higher 28000 GROSS ANNUAL VALUE 28000

52. Exercise 3(including unrealised rent) Find out the gross annual value after taking into consideration the following information for the assessment year 2008-09. (Rs.in thousand) CONT……… A B C M N Municipal value 50 50 50 100 100 Fair rent 68 68 68 117 117 Standard rent under rent control act 62 62 75 115 115 Annual rent 66 66 72 120 110 Unrealized rent of the previous year 2007-08 2 6 5 50 40

54. Note : Application of sec 23 ( 1 ). When unrealized rent of the current previous year shall be deducted if following conditions fulfilled. Condition 1 The tenancy is bona fide. Condition 2 The defaulting tenant has vacated, or steps have been taken to compel him to vacate the property. Condition 3 The defaulting tenant is not in occupation of any other property of the assessee. Condition 4 The assessee has taken all reasonable steps to institute legal proceedings for the recovery of the unpaid rent or satisfies the Assessing Officer that legal proceedings would be useless.

55. Solution 3 Computation of gross annual value: ( Rs in thousands ) A B C M N Municipal value 50 50 50 100 100 Fair rent 68 68 68 117 117 Whichever is higher 68 68 68 117 117 Standard rent 62 62 75 115 115 Whichever is lower(Expected rent) 62 62 68 115 115 Annual rent 66 66 72 120 110 Unrealized rent 2 6 5 50 40 Actual rent ( annual rent – unrealized rent- vacancy allowance ) 66 66 72 120 70 Whichever is higher 66 66 72 120 115 GROSS ANNUAL VALUE 66 66 72 120 115

56. Exercise 4(loss due to vacancy) Find out the gross annual value in the case of M if his property remains vacant throughout the previous year 2007-08 and, consequently, the figure of annual rent is not available. Also calculate gross annual value in the cases of N and O if their properties remain vacant for one month only for the assessment year 2008-09.(Rs in lakhs) M N O Municipal value( per annum) 80 140 140 Fair rent( per annum ) 78 150 150 Standard rent 85 120 120 Annual rent 75 100 144 Property remains vacant (in no of months) (12) (1) (1) Loss due to vacancy __ 8 12

57. Solution 5 Computation of gross annual value: (Rs in thousands) M N O Municipal value 80 140 140 Fair rent 78 150 150 Whichever is higher 80 150 150 Standard rent 85 120 120 Whichever is lower(Expected rent) 80 120 120 Annual rent 75 100 144 Property remains vacant (in no of months) (12) (1) (1) Loss due to vacancy ---- 8 12 Actual rent Nil 92 132 GROSS ANNUAL VALUE NIL 112 132

58. How to decide reasonable rent? (If actual rent minus un realised rent of the current previous year) is more than expected rent then we say he is reasonably letting out The property.And if we reduce further vacancy allowance, even if it goes down below expected rent, we consider the actual rent.

59. Intermission Be truthful to your parents. Work hard.

61. Exercise 5Vacant through out the year) Find out the gross annual value for the assessment year 2008-09 assuming that the property of X remains vacant throughout the previous year 2007-08. However, the property of Y remains vacant from April 1, 2007 to January 31, 2008 and it is let out from February 1, 2008 onwards (rent being Rs. 10000 per month). X Y Municipal value (per annum) 61000 61000 Fair rent( per annum) 72000 72000 Standard rent under the rent control act 60000 60000

63. Exercise: 6(vacancy and unrealised rent preceding to current year Rs.000 Find out the gross annual value for the assessment year 2008-09 for case A if the property is let out (rent being Rs. 48000 per annum) only for 10 months, vacant for 2 months and rent of 4 months could not be realized for the year 2006-07 Rs. 20,000. A Municipal value 140 Fair rent 145 Standard rent 142

65. Exercise 7 X CONT….. (Rs). Municipal value 120000 Fair rent 130000 Standard rent under the rent control act 110000 Actual rent if property is let out throughout the previous year 126000 Unrealized rent of the previous year 2007-08 10500 Period when the property remains vacant (in no of month) (1) Loss due to vacancy 10500 Municipal taxes- Tax of the year 2007-08 18000 - Paid by X during 2007-08 17000 - Paid by X after March 31,2008 1000

68. Computation of income from house property: X Municipal value 120000 Fair rent 130000 Whichever is higher 130000 Standard rent under the rent control act 110000 Whichever is lower 110000 Annual rent if property is let out throughout the previous year 126000 Unrealized rent of the previous year 2007-08 10500 Period when the property remains vacant( in no of month) (1) Loss due to vacancy(126000/12x1) 10500 Actual rent (annual rent – unrealized rent – loss due to vacancy) 105000 GROSS ANNUAL VALUE (actual rent lower than expected rent only because of vacancy. So consider actual rent) 105000 Less: Municipal tax paid by X during the previous year 2007-08 17000 NET ANNUAL VALUE 88000 Less: Standard deduction under section 24(a) [30% of net annual value] 26400 INCOME FROM HOUSE PROPERTY 61600

69. Exercise 8(interest on loan) X takes a loan on January 3, 2004 of Rs. 160000 at 18 per cent per annum for construction of a commercial house property. Construction of the property is completed on July 17, 2007. Loan is repaid on November 30, 2007. Calculate the amount of interest which is deductible for the assessment years 2008-09 and 2009-10. Pre construction interest is the period starting from the date of loan Taken and 31 st March preceding the year of completion.

76. Computation of income from house property Unit 1 (self occupied) = NAV = nil Less: interest on borrowed capital = Rs. 31500 Income from unit 1 = Rs. (-)31500 Unit 2 ( let out ) : If you do not understand Go back to concepts To understand Municipal value Fair rent Whichever is higher Standard rent Whichever is lower Annual rent(a) Unrealized rent(b) Actual rent(a-b) Gross annual value(which ever is higher) Municipal taxes paid (not paid during the current PY.) Net annual value 65000 70000 70000 62500 62500 132000 22000 110000 110000 - 110000

77. Net income of X: Income from house property ( 45500 – 31500 ) = Rs. 14000 Income from other sources = Rs. 180000 Gross income = Rs. 194000 LESS: deductions under section 24 Standard deduction of 30% of NAV Interest on borrowed capital Income from house property 33000 31500 45500

78. Exercise 11 X owns a property at New Delhi (municipal value Rs 1,64,000, fair rent Rs 2,16,000, standard rent Rs 1,80,000). The property is let out up to April 15 2007. (rent being Rs 14000 p.m.) and self occupied for the remaining part of the previous year 2007-08. Expenses incurred by X are: Municipal tax Rs 6000 (actually paid), repairs Rs 2100, insurance Rs 1100, interest on capital borrowed (date of borrowing being June 10 th 1991) for acquiring the property :Rs 123000. Assuming the income of X from other sources is Rs 186000, find out the net income of X for the assessment year 2008-09

79. SOLUTION: Particulars Amount Municipal value Fair rent Whichever is higher Standard rent Whichever is lower Annual rent Gross annual value Less: municipal taxes paid Net annual value Less: deduction under section 24 Standard deduction of 30% of NAV Interest on capital Income from house property 164000 216000 216000 180000 180000 168000 180000 6000 174000 52200 123000 -1200

80. COMPUTATION OF NET INCOME : Income from house property = (-)1200 Income from other sources = 186000 Gross income = 184800

81. Exercise 12(arrears of rent) For the assessment year 2008-09, X claims a deduction of Rs. 86000 on account of unrealized rent and is awarded a decree by a Delhi court on march 15 th 2008 and on April 6, 2008, X recovers Rs. 80000 from the defaulting tenant ( legal expenditure Rs.25000). What will be tax implication of the amount so received?

82. SOLUTION : Rs. 80000 recovered from the defaulting tenant is chargeable to tax as income under the head “ Income From House Property” in the year of recovery i.e., the previous year 2007-08 or assessment 2008-09. expenditure of Rs. 25000 is not deductible.

83. Exercise 13(unrealised rent of 2000-01 period) X owns a house property which is given on rent. For the previous year 2000-01,he claims a deduction of Rs.78000 on account of unrealized rent, out of which the Assessing officer allows only Rs.62000 as deduction. What are the tax consequences if X recovers on April 6,2007 as full & final payment (A)Rs.78000 (expenditure on recovery Rs.40000) or (B)Rs.5000 (expenditure on recovery Rs.5000)

85. Exercise 14(unrealised rent of different period, interest on loan borrowed) From the information given below find out the income under the head Income from House Property for the assessment years 2008-09 and 2009-10. Particulars Amount Municipal value (a) Fair rent (b) Standard rent (c) Annual rent (d) Unrealized rent for the previous year 2007-08 Unrealized rent for the year 2008-09 Unrealized rent for the year 2007-08 realized during previous year 2008-09 Interest on borrowed capital 190000 195000 170000 175000 20000 Nil 18000 36000

86. The above stated property is let out throughout the previous year 2007-08 and 2008-09. Municipal tax paid is at the rate of 20%.

87. Particulars 2008-09 2009-10 Actual rent received Gross Annual Value Step 1- expected rent (a ) or (b) which ever is higher but subject to max (c) Step 2 – if (d) is higher than step 1 , (d) will be taken Gross annual value Less: municipal tax paid (20 % of A) Net annual value Less : deduction under section 24 Standard deduction 30 % Interest on loan Income from house property 155 170 NA 170 38 132 39.6 36 56.4 175 170 175 175 38 137 41.10 36 59.90

88. Recomputation of gross annual value of the previous year 2007-08 Particulars Amount Annual value Less: effective unrealized rent Actual rent Step 1 –expected rent Step 2 – if (d) is higher than step 1, it would be taken Step 3 – NA Gross annual value (recomputed) Less: gross annual value (original) Unrealized rent not taxed earlier Less: deduction under section 24 Income Income under the head “ income from house property” Assessment year 2008 –09 Assessment year 2009-10 175 2__ 173 170 173 NA 173 170 3 ___ 3__ 56.40 62.90

89. Exercise 15(arrears of rent,municipal taxes paid different period) X owns a property. It is given on rent (rent being Rs 11000 p.m.) to a bank. Municipal value of the property is Rs 130000, fair rent is Rs 140000 and standard rent is Rs 134000. Municipal tax paid by X is as follows: Rs 26000 on March 3rd,2008 and Rs 30000 on May 10th 2008. on may 1st 2008 rent is increased from Rs 11000 p.m. to Rs 16000 p.m. with retrospective effect from April 1st,2007. Arrears of rent of 2007-08 are paid on May 1st 2008. Find out the income chargeable to tax for the assessment years 2008-09 and 2009-2010.

90. Solution Particulars 2008-09 2009-10 Municipal value Fair rent Whichever is higher Standard rent Whichever is lower Rent collected Gross Annual Value Less: municipal tax Net annual value Less: deductions under sec 24 Standard deduction i.e. 30% of NAV Income from Property 130000 140000 140000 134000 134000 NA 134000 26000 108000 32400 75600 130000 140000 140000 134000 134000 192000 192000 30000 162000 48600 113400

91. Arrears of rent of 2007-08 paid on May 1 st 2008. Gross annual value if Rs 16000 rent = Rs 192000 Less: Gross annual considered = Rs 134000 Arrears of rent = Rs 58000 Less: standard deduction 30% = Rs 17400 Amount taxable = Rs 40600 Income from house property : Assessment year 2008-09 = Rs 75600 Assessment year 2009-10 = Rs 154000

92. Exercise 16(including other income) Mrs. X ( age 22 years ) has occupied two houses for her residential purposes, particulars of which are as follows: Business income of Mrs. X is 386000. Besides Mrs. X is employed by a Pvt ltd company on monthly salary of Rs 12500. Every year she contributes Rs 50000 towards public provident fund. Determine the taxable income and tax liability of Mrs. X for the assessment year 2008-09. House I Rs House II Rs Municipal value 30000 90000 Fair rent 28000 95000 Standard rent under rent control act 20000 80000 Municipal taxes paid 3000 9000 Interest on borrowed capital 400 1200 Repairs Nil 100

94. Let us choose House II as self occupied property, House I will be treated as “deemed to be let out” property. CONT…. House I House II Municipal valuation 30000 - Fair rent 28000 - Whichever is higher 30000 - Standard rent 20000 - Whichever is lower 20000 - GROSS ANNUAL VALUE 20000 - Less: Municipal taxes paid 3000 - NET ANNUAL VALUE 17000 NIL Less: Deductions under Sec 24 (a) Standard deduction ( 30% of net annual value) 5100 - (b) Interest on borrowed capital 400 1200 INCOME FROM HOUSE PROPERTY 11500 (1200)

95. Net income from house property: HOUSE I = Rs. 11500 HOUSE II = Rs. (1200) NET INCOME = Rs. 10300 Computation of Taxable income : Income from House property = Rs. 10300 Income from Salary = Rs. 150000 Income from business = Rs. 386000 = Rs. 546300 Less: Deductions under sec 80C Public provident fund =Rs. 50000 TAXABLE INCOME =Rs. 496300 CONT……

96. Computation of Tax liability: For Mrs. X, Upto 145000 : NIL 145000 – 150000 : 10% ( 5000 x 10%) = 500 150000 – 250000 : 20% ( 100000 x 20%) = 20000 250000 & above : 30% (246300 x 30%) = 73890 = 94390 Add: 3% educational cess = 2830 TAXABLE LIABILITY = 97220

97. X borrows from a relative Rs 10,000 @ 12 % for construction of house I (date of borrowing June 1 2004, date of repayment of loan May 31 2007) Construction of all the houses is completed in August 2006 determine the taxable income and tax liability of X for the assessment year 08 -09 on the assumption that X contributes Rs 10,000 towards statutory provident fund Rs 2,000 towards National Relief bonds Exercise 17(borrowed from relative and three houses) X 36 years a salaried employee drawing Rs 22000 per monthly salary has occupied three houses for his residential purposes Particulars House I House II House III Standard rent under Poona Rent Control Act 33000 55000 40000 Municipal valuation 40,000 60,000 40,000 Fair rent 43,000 58,000 48,000 Municipal taxes paid 3,000 6,000 4,000 Repairs NIL NIL NIL Ground rent due but outstanding Insurance premium due but outstanding 200 300 ---------------- 400 300 500

100. Exercise 18 (many houses)Mr.X is 31 years, owns four houses outside the jurisdiction of the rent contract act House IV remains vacant for the month of Jan 2008.business income of X for the previous year 07-08 is Rs 2,80,000(it has been computed as per the provisions of income tax act) determine the taxable income & tax liability of X for the assessment year 08-09 on the assumption that he could not occupy house III for 2 months during the previous year and X pays insurance premium of Rs 65,000 on his insurance policy op Rs 3,70,000 . Particulars House I self House II self House III business House IV let out Municipal valuation 40,000 6,000 16,000 60,000 Fair rent 50,000 8,000 22,000 55,000 Rent if let ------- ------ ------- 72,000 Unrealized rent 3,000 Municipal tax paid by X 4,000 500 1,000 6,000 Date of completion of construction June 16 1991 June 5 1974 June 14 1997 March 31 1998 Repairs nil 2,000 500 Nil Collection charges ----- ----- ---- 300 Land revenue 200 --- 100 500 Int on capital borrowed covered 1000 200 400 600 Int on capital borrowed for payment of municipal taxes 300 -- 200 600 Int on capital borrowed for construction 3700 --- --- ---

103. Exercise 19(full-fledged problem) : Mrs. X age 51 years submits the following particulars of her income relevant for the previous year ending march 31 2008 business income: Profit Of Biz A Rs 1,33,400 Loss Of Biz B Rs 18,000 Loss Of Biz C Rs 8,540 A residential house property: municipal valuation : Rs 48,000, fair rent : Rs 52,000 , standard rent : Rs 65,000 municipal taxes paid Rs 6,000, repairs : Rs 200, interest on capital borrowed for purpose of construction of house property (amt borrowed : Rs 20,000,ratye of interest 18 % date of borrowing June 30 1996, date of repayment of loan June 20 2007, date of completion of construction June 30 2001) and annual charges mot created by Mrs. X Rs 500 besides on May 24 2005, Mrs. X borrows Rs 1,95,000 @ 12% PA for the purpose of reconstruction of house property. The house is self occupied from April 1 2007 to March 15 2008 from march 16 2008 it is let out on monthly rent of Rs 4,000.during the previous year, Mrs. X is employed by a company on monthly salary of Rs 19,000.Determine the taxable income and tax liability of Mrs. X for the assessment year 08-09 , she contributes Rs 2,000 towards Indira Vikas Patra.

106. Exercise 20 : X 50 yrs owns a big house (erection completed on March 1 2003). The house has 3 independent residential units . Unit 1 ( 50 % of the floor area) is let out for residential purposes on monthly rent of Rs 8,000( this unit is however used by X from Jan 15 2008 to March 15 2008for his residential purposes) . A sum of Rs 1,000 could not be collected from the tenant. Unit 2 ( 25 % of the floor area) is used by X for the purposes of his residential while Unit 3 the remaining 25 % is used by him for the purposes of his business . Other particulars of house are : municipal valuation: Rs 1,92,000;municipal taxes paid Rs 16,000; repairs Rs 4,000;ground rent : Rs 6,000; land revenue paid : Rs 1,800; insurance paid : Rs 6,000, and Interest on capital borrowed for payment of municipal tax : Rs 4,000, Income of X from Biz is Rs 1,61,200 ( without debiting house rent and other incidental expenditure including admissible depreciation of Rs 600 on the ¼ portion of house used for Biz . Determine the taxable income and tax liability of X for the assessment year 08-09. X contributes Rs 8,000 towards home loan account of the National Housing Bank .

107. Interest on loan repayment for entire house is 36,000 as per act if it is for repairs or renewals it is limited to 30,000. nut in this case 50% portion interest of house which is 18,000 which means full 18,000 is allowed ** interest on loan borrowed for self occupied property is limited to 30,000 or 15,000. but for repairs and renewals is 30,000

109. Total income Amount Unit 1 Unit 2 Unit 3 Total income Deduction 80 C Taxable income Tax amount: Rs 15,400 61,600 --- 1,51,150 ------------ 2,12,750 8000 ------------ 2,04,750 ------------

111. House I House II Fair rent 12900 39700 Municipal value 13000 40000 Annual rent 48000 54000 Municipal taxes paid 1700 4000 Standard rent 12500 60000 Repairs 200 18000 Land revenue 2000 16000 Insurance 500 1500 Unrealized rent of 2006-07 3000 2000 Unrealized rent of 2007-08 1000 35000 Interest on capital borrowed for purchase of house property 1000 14000 Repayment of loan taken from a friend for purchasing house I 3640 ---- Vacant period (number of months) 1 3 Loss on account of vacancy 4000 13500 Actual rent received or receivable 43000 5500 Nature of occupation Let put for residence of managing director of A Ltd Let out for profession Date of completion of construction March 31 st 2003 May 15 th 1974

112. Determine the taxable income and tax liability of X for the assessment year 2008-09. also calculate the amount of unrealized rent which can be claimed as deduction in the assessment year 2009-10

114. NET ANNUAL VALUE: less: deduction under section 24 Standard deduction of 30% of Net Annual value Interest on capital borrowed INCOME FROM HOUSE PROPERTY: 41300 12390 1000___ 27910 22500 6750 14000 1750

115. CALCULATION OF ANNUAL RENT Annual rent Less: unrealized rent Less: loss due to vacancy Actual rent received _______________________ For house 2 the income from house property is Rs.26500 (i.e., 40000 – 13500) House1 48000 1000 47000 4000 43000 House2 54000 35000 19000 ( not considered)

116. Computation of taxable income Income from business Interest on debentures Income from house property GROSS INCOME: Less: deduction under section 80C Contribution to provident fund-70000 Investment in national bond - 40000 110000 *Note: the maximum amount deductable under this sec is Rs. 100000 NET INCOME: 144200 205000 29660 378880 100000 278880

117. Computation Of Tax Liability NET INCOME Less: exemption limit Taxable amount 40000*10% 100000*20% 28880*30% Add: 3% educational cess Tax payable Rounding off 278880 110000 168880 4000 20000 8664 32664 979 33643 33640

119. Solution 22:computation of income from house property Municipal value( a) Fair rent (b) Standard rent (c) Actual rent (d) If (d) is more than the previous step then (d) should be considered Gross annual value Less: municipal tax paid Net annual value Less: deduction under sec 24 Standard deduction of 30% of net annual value Interest on capital 60000 62000 61600 60950 61600 -- 61600 18480 1350

120. Income from house property Add: rent received chargeable under section 25 A Income under the head ‘income from house property 41770 9000 50770

121. Computation of taxable income Business income Income from house property Income from other sources: Amount collected from tenants for providing amenities (8400*11.5/12)-8050 Less: expenses(7600+1100) - 8700 Gross taxable income Less: deduction under section 80C Net income: 346000 50770 396770 -650 396120 -___ 396120

122. Computation of tax liability Total income Less: exemption limit 40000*10% 100000*20% 146120*30% Add: 3% educational cess Tax payable Rounding off 396120 110000 286120 4000 20000 43836 67836 2035 69871 69870

125. Computation of income under different options house1 house2 House3 house4 If self occupied , NAV= less: interest on capital Income from house property Nil 25000 _____ - 25000 Nil 30000 _____ - 30000 Nil 84000 _____ - 84000 Nil 150000 ______ - 150000 If deemed let-out Municipal value (a) Fair rent (b) Standard rent (c) 40000 50000 60000 170000 160000 174000 25000 26000 20000 90000 97000 96000

126. House1 House2 House3 House4 Expected rent (a) or (b) subject to a maximum of (c) GAV Less: municipal taxes paid NAV Less: deductions under section 24 Standard deduction Interest on capital 50000 50000 8000 _______ 42000 12600 25000 4400 170000 170000 26000 _______ 144000 43200 35000 65800 20000 20000 4000 _______ 16000 4800 84000 - 72800 96000 96000 22000 _______ 74000 22200 156000 - 104200

127. Mr. X has the following options particulars (IHP) Option 1 (house 1 is self occupied) Option 2 (house 2 is self occupied) Option 3 (house 3 is self occupied) Option 4 (house 4 is self occupied) House 1 House 2 House 3 House 4 Income from house property Income from business GROSS INCOME: Less: deduction under sec 80 C -25000 65800 -72800 - 104200 -136200 520000 383800 100000 4400 -30000 -72800 - 104200 -202600 520000 317400 100000 4400 65800 -84000 104200 -118000 520000 402000 100000 4400 65800 -72800 - 150000 152600 520000 367400 100000

129. Calculation of tax liability Net income Less : exemption limit 40000*10% 67400*20% +-add: 3% educational cess Tax payable 217400 110000 107400 4000 13480 17480 524.4 18004.4 18000

130. Exercise 24:(self occupied partly, let out partly) Mrs. X (age : 51 yrs) own s two houses. Relevant details are given below : Particulars House 1 House 2 Let out Self-occupied Municipal value per annum (a) Fair rent (b) Standard rent (c) Rent of let out property (d) Interest on borrowed capital Municipal tax paid April 1,2007 to June 30, 2007(rent being Rs.25000 per month) July 1,2007 to March 31, 2008 60000 70000 66000 75000 2000 10000 July 1, 2007 to march 31, 2008 (rent being Rs. 10000 per month) April 1,2007 to June 30,2007 100000 95000 110000 90000 40000 17000

132. Computation of taxable income and tax liability Income from house property Income from business Gross total income Less: deductions under section 80C Contribution to public provident fund Net taxable income TAX LIABILITY: Taxable income Less : exemption limit 5000*10% 100000*20% 941600*30% 61600 1200000 1261600 70000 1191600 1191600 145000 1046600 500 20000 282480 302980

133. Add: surcharge of 10% as income exceeds 1000000 Add: 3% educational cess Tax payable Rounding off 30298 333278 9998 343276 343280

135. Calculation of income from house property particulars X Z Gross annual value Less: municipal taxes paid Net annual value Less: deductions under section 24 Standard deduction of 30% of NAV Interest on capital borrowed Income from house property Nil Nil Nil Nil 30000 -30000 120000 20000 100000 30000 30000 40000

136. Thank you very much Study daily You can achieve anything under the sun If you are sincere to you. Jai Hind Help your mother in cooking Don’t give excuses saying you are studying