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Calculate income from house property from the following information a) municipal value Rs. 1,10,000 b)fair rent Rs. 90,000 c) actual rent Rs. 10,000 per month d) standard rent Rs. 95,000 e) municipal tax @ 10 % paid f) vacancy 1 month?
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Calculate income from house property from the following information a)...
Calculation of Income from House Property
Income from house property is a taxable income that is calculated on the basis of various factors such as municipal value, fair rent, actual rent, standard rent, municipal tax, and vacancy. Let us calculate the income from house property using the given information:
Municipal Value
Municipal value is the value assigned to the property by the local municipality for the purpose of levying property tax. In this case, the municipal value is Rs. 1,10,000.
Fair Rent
Fair rent is the rent that the property should fetch if it were to be let out in the open market. In this case, the fair rent is Rs. 90,000.
Actual Rent
Actual rent is the rent that the property is actually earning. In this case, the actual rent is Rs. 10,000 per month or Rs. 1,20,000 per annum.
Standard Rent
Standard rent is the rent that is fixed by the Rent Control Act for a particular property. In this case, the standard rent is Rs. 95,000.
Municipal Tax
Municipal tax is the tax paid to the local municipality on the property. In this case, the municipal tax paid is 10% of the municipal value, i.e. 10% of Rs. 1,10,000 = Rs. 11,000.
Vacancy
Vacancy refers to the period during which the property remains vacant and does not earn any rent. In this case, the vacancy is 1 month.
Calculation of Annual Value
The annual value of the property is calculated as follows:
Annual Value = Higher of Fair Rent and Actual Rent
= Rs. 1,20,000 (since Fair Rent < actual="" />
Calculation of Net Annual Value
The net annual value of the property is calculated as follows:
Net Annual Value = Annual Value - Municipal Taxes Paid
= Rs. 1,20,000 - Rs. 11,000
= Rs. 1,09,000
Calculation of Gross Annual Value
The gross annual value of the property is calculated as follows:
Gross Annual Value = Higher of Annual Value and Standard Rent
= Rs. 1,20,000 (since Annual Value > Standard Rent)
Calculation of Income from House Property
The income from house property is calculated as follows:
Income from House Property = Gross Annual Value - Municipal Taxes Paid - Vacancy
= Rs. 1,20,000 - Rs. 11,000 - Rs. 10,000
= Rs. 99,000
Conclusion
Therefore, the income from house property for the given information is Rs. 99,000.
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Calculate income from house property from the following information a) municipal value Rs. 1,10,000 b)fair rent Rs. 90,000 c) actual rent Rs. 10,000 per month d) standard rent Rs. 95,000 e) municipal tax @ 10 % paid f) vacancy 1 month?
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Calculate income from house property from the following information a) municipal value Rs. 1,10,000 b)fair rent Rs. 90,000 c) actual rent Rs. 10,000 per month d) standard rent Rs. 95,000 e) municipal tax @ 10 % paid f) vacancy 1 month? 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 Calculate income from house property from the following information a) municipal value Rs. 1,10,000 b)fair rent Rs. 90,000 c) actual rent Rs. 10,000 per month d) standard rent Rs. 95,000 e) municipal tax @ 10 % paid f) vacancy 1 month? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate income from house property from the following information a) municipal value Rs. 1,10,000 b)fair rent Rs. 90,000 c) actual rent Rs. 10,000 per month d) standard rent Rs. 95,000 e) municipal tax @ 10 % paid f) vacancy 1 month?.
Calculate income from house property from the following information a) municipal value Rs. 1,10,000 b)fair rent Rs. 90,000 c) actual rent Rs. 10,000 per month d) standard rent Rs. 95,000 e) municipal tax @ 10 % paid f) vacancy 1 month? 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 Calculate income from house property from the following information a) municipal value Rs. 1,10,000 b)fair rent Rs. 90,000 c) actual rent Rs. 10,000 per month d) standard rent Rs. 95,000 e) municipal tax @ 10 % paid f) vacancy 1 month? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate income from house property from the following information a) municipal value Rs. 1,10,000 b)fair rent Rs. 90,000 c) actual rent Rs. 10,000 per month d) standard rent Rs. 95,000 e) municipal tax @ 10 % paid f) vacancy 1 month?.
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