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A house was completed on April 1st, 2017 and following information is available Muncipale value of house -30000 Fair value of house -32000 Actual rent -4000 Municipal taxes -6000 Let out for the period 1-4-2017 to 31-12-2017 and self occupied from 1-1-2018 ownward Fire insurance premium-3600 Land revenue-6000 Interest on loan for period 1-4-2014 to 31-3-2017-4500 1-4-2017 to 31-3-2018-15000 Calculate income from house property for the previous years ending on 31-3-2018?
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A house was completed on April 1st, 2017 and following information is ...
Calculation of Income from House Property for the Previous Years Ending on 31-3-2018
Step 1: Calculation of Annual Value
The annual value of the house property is the higher of the municipal value or the fair value. In this case, the fair value is higher, so the annual value is:
Annual Value = Fair Value = Rs. 32,000
Step 2: Calculation of Net Annual Value
To calculate the net annual value, we need to deduct the municipal taxes paid from the annual value.
Net Annual Value = Annual Value - Municipal Taxes
Net Annual Value = Rs. 32,000 - Rs. 6,000 = Rs. 26,000
Step 3: Calculation of Gross Annual Value
If the property is let out for the entire year, the gross annual value is equal to the net annual value. In this case, the property was let out only for a part of the year, so we need to pro-rate the net annual value for the period that it was let out.
Gross Annual Value = Net Annual Value x (Period Let Out / 12)
Gross Annual Value = Rs. 26,000 x (9 / 12) = Rs. 19,500
Step 4: Calculation of Deductions
The following deductions are allowed under the Income Tax Act:
1. Standard Deduction: 30% of the Net Annual Value = 30% of Rs. 26,000 = Rs. 7,800
2. Interest on Loan: Rs. 15,000 (for the period 1-4-2017 to 31-3-2018)
Step 5: Calculation of Income from House Property
Income from House Property = Gross Annual Value - Deductions
Income from House Property = Rs. 19,500 - (Rs. 7,800 + Rs. 15,000) = Rs. -3,300
Since the result is negative, it indicates a loss from house property. This loss can be carried forward and set off against future income from house property for up to 8 years.
Step 1: Calculation of Annual Value
The annual value of the house property is the higher of the municipal value or the fair value. In this case, the fair value is higher, so the annual value is:
Annual Value = Fair Value = Rs. 32,000
Step 2: Calculation of Net Annual Value
To calculate the net annual value, we need to deduct the municipal taxes paid from the annual value.
Net Annual Value = Annual Value - Municipal Taxes
Net Annual Value = Rs. 32,000 - Rs. 6,000 = Rs. 26,000
Step 3: Calculation of Gross Annual Value
If the property is let out for the entire year, the gross annual value is equal to the net annual value. In this case, the property was let out only for a part of the year, so we need to pro-rate the net annual value for the period that it was let out.
Gross Annual Value = Net Annual Value x (Period Let Out / 12)
Gross Annual Value = Rs. 26,000 x (9 / 12) = Rs. 19,500
Step 4: Calculation of Deductions
The following deductions are allowed under the Income Tax Act:
1. Standard Deduction: 30% of the Net Annual Value = 30% of Rs. 26,000 = Rs. 7,800
2. Interest on Loan: Rs. 15,000 (for the period 1-4-2017 to 31-3-2018)
Step 5: Calculation of Income from House Property
Income from House Property = Gross Annual Value - Deductions
Income from House Property = Rs. 19,500 - (Rs. 7,800 + Rs. 15,000) = Rs. -3,300
Since the result is negative, it indicates a loss from house property. This loss can be carried forward and set off against future income from house property for up to 8 years.
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A house was completed on April 1st, 2017 and following information is available Muncipale value of house -30000 Fair value of house -32000 Actual rent -4000 Municipal taxes -6000 Let out for the period 1-4-2017 to 31-12-2017 and self occupied from 1-1-2018 ownward Fire insurance premium-3600 Land revenue-6000 Interest on loan for period 1-4-2014 to 31-3-2017-4500 1-4-2017 to 31-3-2018-15000 Calculate income from house property for the previous years ending on 31-3-2018?
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A house was completed on April 1st, 2017 and following information is available Muncipale value of house -30000 Fair value of house -32000 Actual rent -4000 Municipal taxes -6000 Let out for the period 1-4-2017 to 31-12-2017 and self occupied from 1-1-2018 ownward Fire insurance premium-3600 Land revenue-6000 Interest on loan for period 1-4-2014 to 31-3-2017-4500 1-4-2017 to 31-3-2018-15000 Calculate income from house property for the previous years ending on 31-3-2018? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A house was completed on April 1st, 2017 and following information is available Muncipale value of house -30000 Fair value of house -32000 Actual rent -4000 Municipal taxes -6000 Let out for the period 1-4-2017 to 31-12-2017 and self occupied from 1-1-2018 ownward Fire insurance premium-3600 Land revenue-6000 Interest on loan for period 1-4-2014 to 31-3-2017-4500 1-4-2017 to 31-3-2018-15000 Calculate income from house property for the previous years ending on 31-3-2018? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A house was completed on April 1st, 2017 and following information is available Muncipale value of house -30000 Fair value of house -32000 Actual rent -4000 Municipal taxes -6000 Let out for the period 1-4-2017 to 31-12-2017 and self occupied from 1-1-2018 ownward Fire insurance premium-3600 Land revenue-6000 Interest on loan for period 1-4-2014 to 31-3-2017-4500 1-4-2017 to 31-3-2018-15000 Calculate income from house property for the previous years ending on 31-3-2018?.
A house was completed on April 1st, 2017 and following information is available Muncipale value of house -30000 Fair value of house -32000 Actual rent -4000 Municipal taxes -6000 Let out for the period 1-4-2017 to 31-12-2017 and self occupied from 1-1-2018 ownward Fire insurance premium-3600 Land revenue-6000 Interest on loan for period 1-4-2014 to 31-3-2017-4500 1-4-2017 to 31-3-2018-15000 Calculate income from house property for the previous years ending on 31-3-2018? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A house was completed on April 1st, 2017 and following information is available Muncipale value of house -30000 Fair value of house -32000 Actual rent -4000 Municipal taxes -6000 Let out for the period 1-4-2017 to 31-12-2017 and self occupied from 1-1-2018 ownward Fire insurance premium-3600 Land revenue-6000 Interest on loan for period 1-4-2014 to 31-3-2017-4500 1-4-2017 to 31-3-2018-15000 Calculate income from house property for the previous years ending on 31-3-2018? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A house was completed on April 1st, 2017 and following information is available Muncipale value of house -30000 Fair value of house -32000 Actual rent -4000 Municipal taxes -6000 Let out for the period 1-4-2017 to 31-12-2017 and self occupied from 1-1-2018 ownward Fire insurance premium-3600 Land revenue-6000 Interest on loan for period 1-4-2014 to 31-3-2017-4500 1-4-2017 to 31-3-2018-15000 Calculate income from house property for the previous years ending on 31-3-2018?.
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A house was completed on April 1st, 2017 and following information is available Muncipale value of house -30000 Fair value of house -32000 Actual rent -4000 Municipal taxes -6000 Let out for the period 1-4-2017 to 31-12-2017 and self occupied from 1-1-2018 ownward Fire insurance premium-3600 Land revenue-6000 Interest on loan for period 1-4-2014 to 31-3-2017-4500 1-4-2017 to 31-3-2018-15000 Calculate income from house property for the previous years ending on 31-3-2018?, a detailed solution for A house was completed on April 1st, 2017 and following information is available Muncipale value of house -30000 Fair value of house -32000 Actual rent -4000 Municipal taxes -6000 Let out for the period 1-4-2017 to 31-12-2017 and self occupied from 1-1-2018 ownward Fire insurance premium-3600 Land revenue-6000 Interest on loan for period 1-4-2014 to 31-3-2017-4500 1-4-2017 to 31-3-2018-15000 Calculate income from house property for the previous years ending on 31-3-2018? has been provided alongside types of A house was completed on April 1st, 2017 and following information is available Muncipale value of house -30000 Fair value of house -32000 Actual rent -4000 Municipal taxes -6000 Let out for the period 1-4-2017 to 31-12-2017 and self occupied from 1-1-2018 ownward Fire insurance premium-3600 Land revenue-6000 Interest on loan for period 1-4-2014 to 31-3-2017-4500 1-4-2017 to 31-3-2018-15000 Calculate income from house property for the previous years ending on 31-3-2018? theory, EduRev gives you an
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