Mr. X has a property whose municipal valuation is ₹ 1,30,000 p.a. The fair rent is ₹ 1,10,000 p.a. and the standard rent fixed by the Rent Control Act is ₹ 1,20,000 p.a. The property was let out for a rent of ₹ 11,000 p.m. throughout the previous year. Unrealised rent was ₹ 11,000 and all conditions prescribed by Rule 4 are satisfied. He paid municipal taxes @ 10% of municipal valuation. Interest on borrowed capital was ₹ 2,00,000 for the year. Compute his tax liability for A.Y. 2021-22.
A. Loss from House Property ₹ 92,000
B. Profit from House Property ₹ 92,000
C. Tax ₹ 5,000
D. Loss from house property ₹ 11,24,400
Answer:D
Mr. X has a property whose municipal valuation is ₹ 1,30,000 p.a. The fair rent is ₹ 1,10,000 p.a. and the standard rent fixed by the Rent Control Act is ₹ 1,20,000 p.a. The property was let out for a rent of ₹ 11,000 p.m. throughout the previous year. Unrealised rent was ₹ 11,000 and all conditions prescribed by Rule 4 are satisfied. He paid municipal taxes @ 10% of municipal valuation. Interest on borrowed capital was ₹ 2,00,000 for the year. Compute his tax liability for A.Y. 2021-22.
A. Loss from House Property ₹ 92,000 B. Profit from House Property ₹ 92,000 C. Tax ₹ 5,000 D. Loss from house property ₹ 11,24,400