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Mr. Rakesh sharm has a house property in agra. Its Particulars are as follows municipal value , fair rent. Mr. Rakesh used this property as own residence from 1.4.2019to 30.6.2019 and let it out from 1.7.2019 on a rent of ₹15, 000 per month. Mr. Sharma paida municipal taxes₹20, 000 in the previous year. Taxes include ₹ 5,000 of the past year (before the previous year). Calculate income from house property for the assignment year 2020-21?
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Mr. Rakesh sharm has a house property in agra. Its Particulars are as ...
Calculation of Income from House Property for the Assignment Year 2020-21

Particulars of the Property:
- Municipal Value: Not given
- Fair Rent: Not given
- Period of self-occupation: 1.4.2019 to 30.6.2019
- Rent received: ₹15,000 per month from 1.7.2019

Determination of Annual Value:
- Since the municipal value and fair rent are not given, we will take the higher of the two as the annual value.
- As the municipal value is not given, we will assume that the fair rent is higher.
- Fair rent for the property = ₹15,000 per month
- Annual value = Fair rent x Period of Letting out = ₹15,000 x 9 = ₹1,35,000

Deductions:
- Municipal Taxes paid during the year = ₹20,000
- Taxes paid in the previous year (before the previous year) = ₹5,000
- Total deductions = ₹20,000

Computation of Income from House Property:
- Gross Annual Value = ₹1,35,000
- Municipal Taxes paid during the year = ₹20,000
- Net Annual Value = Gross Annual Value - Municipal Taxes = ₹1,15,000
- Income from House Property = Net Annual Value - Deductions = ₹95,000

Explanation:
- The annual value of the property is determined based on the higher of the municipal value and fair rent.
- As the property was self-occupied for a part of the year, the annual value is calculated only for the period of letting out.
- The deductions allowed from the net annual value include municipal taxes paid during the year and taxes paid in the previous year (before the previous year).
- The income from house property is calculated as the net annual value minus the deductions.
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Mr. Rakesh sharm has a house property in agra. Its Particulars are as ...
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Mr. Rakesh sharm has a house property in agra. Its Particulars are as follows municipal value , fair rent. Mr. Rakesh used this property as own residence from 1.4.2019to 30.6.2019 and let it out from 1.7.2019 on a rent of ₹15, 000 per month. Mr. Sharma paida municipal taxes₹20, 000 in the previous year. Taxes include ₹ 5,000 of the past year (before the previous year). Calculate income from house property for the assignment year 2020-21?
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