Mr. Subodh owns many house properties which are vacant. He claims that there should be no tax as there is no income. Why is Subodh’s contention right or wrong
A. Mr. Subodh is right. He will not pay tax as rent received is nil.
B. Mr. Subodh is right, as there is no notional income.
C. Mr. Subodh is wrong, as tax on house property is on value of the house.
D. Mr. Subodh is wrong. He must pay tax even without income as tax is on the capacity of the house to generate income.
Answer:D
Mr. Subodh owns many house properties which are vacant. He claims that there should be no tax as there is no income. Why is Subodh’s contention right or wrong
A. Mr. Subodh is right. He will not pay tax as rent received is nil. B. Mr. Subodh is right, as there is no notional income. C. Mr. Subodh is wrong, as tax on house property is on value of the house. D. Mr. Subodh is wrong. He must pay tax even without income as tax is on the capacity of the house to generate income.