INCOME TAX LAW AND PRACTICE

DIGITAL ASSIGNMENT-2
QUESTION: 1
HOUSE - 1 HOUSE – 2 HOUSE - 3

Municipal value – 72000 WEH Municipal value – 84000 WEH Municipal vale – 69600 WEH
Fair rent - 84000 Fair rent - 81600 Fair rent - 85200

Fair rent - 84000 WEL Municipal value – 84000 WEL Fair rent - 85200 WEL
Std rent - 60000 Std rent - 90000 Std rent - 72000

GAV = 60000 GAV = 84000 GAV = 72000

‘The house which is having higher GAV will be treated has self occupied’.
So HOUSE 2 is considerd as self occupied.
GAV = 60000 GAV = nil GAV = 72000
-tax paid by owner = 7200 -tax paid by owner = nil -tax paid by owner = 5568

NAV = 52800 NAV = Nil NAV = 66432

(-)deduction under sec 24: (-)deduction under sec 24: (-)deduction under sec 24:

Std deduction = 15840 Interest on Std deduction=19927

Interest on Borrowed = 200000 Interst on
Borrowed =322500 =338340 Capital Borrowed =322500= 342427
capital Capial

Income from Income from Income from

house = - 285540 house = 200000 house = - 275998
property property property
QUESTION: 2
HOUSE - 1 HOUSE – 2 HOUSE - 3

Municipal value – 84000 WEH Municipal value –120000 WEH Municipal vale – 144000 WEH
Fair rent - 108000 Fair rent - 95600 Fair rent - 132000

Fair rent - 108000 WEL Municipal value – 120000 WEL Municipal value -144000 WEL
Std rent - 108000 Std rent - 96000 Std rent - 90000

GAV = 108000 GAV = 96000 GAV = 90000

GAV = 108000 GAV = 96000 GAV = 90000

-tax paid by owner = 2520 -tax paid by owner = 4800 -tax paid by owner = 3600

NAV = 105480 NAV = 91200 NAV = 36400

(-)Deduction under sec 24: (-)Deduction under sec 24: (-)Deduction under sec 24:
Std. deduction = 27360
Std deduction = 31644 Interest on Std deduction= 25920
Interest on Borrowed 170625 = 197925 Interst on
Borrowed =187500 =219144 Capital Borrowed =410000= 435920
capital Capial

Income from Income from Income from

house = - 113664 house = -106725 house = - 349520
property property property
HOUSE – 4 HOUSE – 5

Municipal value – 168000 WEH Municipal value – 81600 WEH

Fair rent - 126000 Fair rent - 110400

Municipal value -168000 WEL Fair rent – 110400 WEL

Std rent - 192000 Std rent - 96000

GAV = 168000 GAV = 96000

GAV = Nil GAV = 96000

-tax paid by owner = Nil -tax paid by owner = 2025

NAV = Nil NAV = 93975

(-)Deduction under sec 24: (-)Deduction under sec 24:

Std. deduction = 28192
Interest on Interest on
Borrowed = 183750 Borrowed 183750 = 197925
capital Capital

Income from
house = 183750 Income from
property house = 117967
property

GOTTAM SUSHMA
15BCC0039