Ms. Gupta has two properties. Calculate her income from house property from the following information. Particular. House1. House 2. Fair Rent. 10,000 pm. 19,000 pm Muncipal Value. 145,000. 165,000 Standard Rent. 14,000 pm. 21,000 pm Actual Rent. 13,500 pm. 17,500 pm Insurance Paid. 19,000. 22,000 Interest on. 21,000. 26,000 Borrowed Capital Muncipal Taxes 8,500. 11,000 Paid?

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Answer

Calculation of Income from House Property for Ms. Gupta

Particulars of House Property:

House 1 - Fair Rent: 10,000 pm, Municipal Value: 145,000, Standard Rent: 14,000 pm, Actual Rent: 13,500 pm, Insurance Paid: 19,000, Interest on Borrowed Capital: 21,000, Municipal Taxes Paid: 8,500

House 2 - Fair Rent: 19,000 pm, Municipal Value: 165,000, Standard Rent: 21,000 pm, Actual Rent: 17,500 pm, Insurance Paid: 22,000, Interest on Borrowed Capital: 26,000, Municipal Taxes Paid: 11,000

Calculation of Income from House Property:

Gross Annual Value (GAV) of House 1 = Fair Rent or Municipal Value, whichever is higher = 145,000

Gross Annual Value (GAV) of House 2 = Fair Rent or Municipal Value, whichever is higher = 165,000

Net Annual Value (NAV) of House 1 = GAV - Municipal Taxes Paid = 136,500

Net Annual Value (NAV) of House 2 = GAV - Municipal Taxes Paid = 154,000

Income from House Property = Sum of (Actual Rent Received - Municipal Taxes Paid - 30% of Net Annual Value - Interest on Borrowed Capital - Insurance Paid)

Income from House 1 = (13,500 - 8,500 - 30% of 136,500 - 21,000 - 19,000) = 5,200

Income from House 2 = (17,500 - 11,000 - 30% of 154,000 - 26,000 - 22,000) = 9,500

Total Income from House Property for Ms. Gupta = Income from House 1 + Income from House 2 = 5,200 + 9,500 = 14,700

Therefore, Ms. Gupta's income from house property is 14,700.

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