Chapter 4: Income from House Property

CHAPTER

Income from House Property 4

Question 1
Jayashree owns five houses in India, all of which are let-out. Compute the GAV of each
house from the information given below – [SM Q.]
Particulars House I House II House III House IV House V
(`) (`) (`) (`) (`)
Municipal Value 80,000 55,000 65,000 24,000 80,000
Fair Rent 90,000 60,000 65,000 25,000 75,000
Standard Rent N.A. 75,000 58,000 N.A. 78,000
Actual rent received/ receivable 72,000 72,000 60,000 30,000 72,000

Question 2
I
Mr. Nandan own five houses at Delhi. Compute the NAV of each house from the information
given below: (`)

Particulars House I House II House III House IV House V

Municipal Value 1,20,000 2,40,000 1,10,000 90,000 75,000

Fair Rent 1,50,000 2,40,000 1,14,000 84,000 80,000

Standard Rent 1,08,000 N.A. 1,40,000 N.A. 78,000

Actual Rent received / 1,80,000 2,10,000 1,20,000 1,08,000 72,000

receivable 10% 12% 15% 8% 12%
Municipal Taxes

Question 3
Rajesh, a British national, is a resident and ordinarily resident in India during the P.Y. 2023-
24. He owns a house in London, which he has let out at £ 10,000 p.m. The municipal taxes
paid to the Municipal Corporation of London is £ 8,000 during the P.Y. 2023-24. The value
of one £ in Indian rupee to be taken at ` 95. Compute Rajesh’s Net Annual Value of the
property for the A.Y. 2024-25. [SM Q.]
Answer 3
For the P.Y. 2023-24, Mr. Rajesh, a British national, is resident and ordinarily resident in India.
Therefore, income received by him by way of rent of the house property located in London is to be
included in the total income in India. Municipal taxes paid in London is be to allowed as deduction

42 CA Bhanwar Borana
 Chapter 4: Income from House Property
from the gross annual value.
Computation of Net Annual Value of the property of Mr. Rajesh for A.Y. 2024-25
Particulars `
Gross Annual Value (£ 10,000 × 12 × 95) 1,14,00,000
Less: Municipal taxes paid (£ 8,000×95) 7,60,000
Net Annual Value (NAV) 1,06,40,000

Question 4
Sneha had taken a loan of ` 7,00,000 for construction of property on 1.10.2022. Interest
was payable @ 12% p.a. The construction was completed on 30.6.2023. No principal
repayment has been made up to 31.3.2024. Compute the interest allowable as deduction
u/s 24 for the A.Y.2024-25.

Question 5
Loan taken for construction of House ` 10,00,000 on 01/06/17 @12% p.a. Loan repaid on
1/04/2020 ` 4,00,000. Construction completed on 1/3/2022. Compute interest on loan
deduction for A.Y. 2024-25.

Question 6
Mr. Manas owns two house properties one at Bombay, wherein his family resides and the
other at Delhi, which is unoccupied. He lives in Chandigarh for his employment purposes in
a rented house. For acquisition of house property at Bombay, he has taken a loan of ` 30
lakh@10% p.a. on 1.4.2022. He has not repaid any amount so far. In respect of house
property at Delhi, he has taken a loan of ` 5 lakh@11% p.a. on 1.10.2022 towards repairs.
Compute the deduction which would be available to him under section 24(b) for A.Y.2024-
25 in respect of interest payable on such loan if he exercises the option of shifting out of the
default tax regime provided u/s 115BAC(1A). [SM Q.]
Answer 6
Mr. Manas can claim benefit of Nil Annual Value in respect of his house property at Bombay and
Delhi, since no benefit is derived by him from such properties, and he cannot occupy such properties
due to reason of his employment at Chandigarh, where he lives in a rented house.
Computation of deduction u/s 24(b) for A.Y.2024-25
Particulars `
I Interest on loan taken for acquisition of residential house property at 2,00,000
Bombay30,00,000 x 10% = ` 3,00,000 Restricted to ` 2,00,000
II Interest on loan taken for repair of residential house property at Delhi `
5,00,000 x 11% = ` 55,000
Restricted to ` 30,000 30,000
Total interest 2,30,000
Deduction under section 24(b) in respect of (I) and (II) above to be restricted to 2,00,000

Question 7
Anirudh has a property whose municipal valuation is ` 1,30,000 p.a. The fair rent is `
1,10,000 p.a. and the standard rent fixed by the Rent Control Act is ` 1,20,000 p.a. The
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Chapter 4: Income from House Property
property was let out for a rent of ` 11,000 p.m. throughout the previous year.
Unrealized rent was ` 11,000 and all conditions prescribed by Rule 4 are satisfied. He paid
municipal taxes @10% of municipal valuation. Interest on borrowed capital was ` 40,000 for
the year. Compute his income from house property for A.Y.2024-25. [SM Q.]

Question 8
Ganesh has a property whose municipal valuation is ` 2,50,000 p.a. The fair rent is `
2,00,000 p.a. and the standard rent fixed by the Rent Control Act is ` 2,10,000 p.a. The
property was let out for a rent of ` 20,000 p.m. However, the tenant vacated the property on
31.1.2024. Unrealised rent was ` 20,000 and all conditions prescribed by Rule 4 are
satisfied. He paid municipal taxes @8% of municipal valuation. Interest on borrowed capital
was ` 65,000 for the year. Compute the income from house property of Ganesh for A.Y.
2024-25. [SM Q.]

Question 9
Poorna has one house property at Indira Nagar in Bangalore. She stays with her family in
the house. The rent of similar property in the neighbourhood is ` 25,000 p.m. The municipal
valuation is ` 2,80,000 p.a.. Municipal taxes paid is ` 8,000. The house construction began
in April 2018 with a loan of ` 20,00,000 taken from SBI Housing Finance Ltd. @9% p.a. on
1.4.2018. The construction was completed on 30.11.2018. The accumulated interest up to
31.3.2020 is ` 3,60,000. On 31.3.2024, Poorna paid ` 2,40,000 which included ` 1,80,000
as interest. There was no principal repayment prior to this date. Compute Poorna’s income
from house property for A.Y. 2024-25 if she exercises the option of shifting out of the default
tax regime provided u/s 115BAC(1A). [SM Q.]
Answer 9
Computation of income from house property of Smt. Poorna for A.Y. 2024-25
Particulars Amount `
Annual Value of house used for self-occupation under section 23(2) Nil
Less: Deduction under section 24
Interest on borrowed capital
Interest on loan was taken for construction of house on or after 1.4.99 and
same was completed within the prescribed time - interest paid or payable
subject to a maximum of ` 2,00,000 (including apportioned pre-
construction interest) will be allowed as deduction.
In this case the total interest is ` 1,80,000 + ` 72,000 (Being 1/5th of `
3,60,000) = ` 2,52,000. However, the interest deduction is restricted to `
2,00,000. 2,00,000
Loss from house property
(2,00,000)

Question 10
Smt. Rajalakshmi owns a house property at Adyar in Chennai. The municipal value of the
property is ` 5,00,000, fair rent is ` 4,20,000 and standard rent is ` 4,80,000. The property
was let-out for ` 50,000 p.m. up to December 2023. Thereafter, the tenant vacated the
property and Smt. Rajalakshmi used the house for self-occupation. Rent for the months of
November and December 2023 could not be realised in spite of the owner’s efforts. All the
conditions prescribed under Rule 4 are satisfied. She paid municipal taxes @12% during the
year. She had paid interest of ` 25,000 during the year for amount borrowed for repairs for
the house property. Compute her income from house property for the A.Y. 2024-25. [SM Q.]
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 Chapter 4: Income from House Property

Question 11
Ganesh has three houses, all of which are self-occupied. The particulars of the houses for
the P.Y. 2023-24 are as under:
Particulars House I House II House III
Municipal valuation p.a. ` 3,00,000 ` 3,60,000 ` 3,30,000
Fair rent p.a. ` 3,75,000 ` 2,75,000 ` 3,80,000
Standard rent p.a. ` 3,50,000 ` 3,70,000 ` 3,75,000
Date of completion/purchase 31.3.1999 31.3.2002 01.4.2015
Municipal taxes paid during the year 12% 8% 6%
Interest on money borrowed for repair of - 55,000
property during the current year
Interest for current year on money 1,75,000
borrowed in April, 2016 for purchase of
Property
Compute Ganesh’s income from house property for A.Y.2024-25 and suggest which houses
should be opted by Ganesh to be assessed as self-occupied so that his tax liability is
minimum. [SM Q.]

Question 12
Prem owns a house in Madras. During the previous year 2023-24, 2/3rd portion of the
house was self-occupied and 1/3rd portion was let out for residential purposes at a rent of `
8,000 p.m. Municipal value of the property is ` 3,00,000 p.a., fair rent is ` 2,70,000 p.a. and
standard rent is ` 3,30,000 p.a. He paid municipal taxes @10% of municipal value during
the year. A loan of ` 25,00,000 was taken by him during the year 2019 for acquiring the
property. Interest on loan paid during the previous year 2023-24 was ` 1,20,000. Compute
Prem’s income from house property for the A.Y. 2024-25 if he exercises the option of
shifting out of the default tax regime provided u/s 115BAC(1A). [SM Q.]

Question 13
Mr. Anand sold his residential house property in March, 2023.
In June, 2023, he recovered rent of ` 10,000 from Mr. Gaurav, to whom he had let out his
house for two years from April 2017 to March 2019. He could not realize two months rent of
` 20,000 from him and to that extent his actual rent was reduced while computing income
from house property for A.Y.2019-20.
Further, he had let out his property from April, 2019 to February, 2023 to Mr. Satish. In April,
2021, he had increased the rent from ` 12,000 to ` 15,000 per month and the same was a
subject matter of dispute. In September, 2023, the matter was finally settled and Mr. Anand
received ` 69,000 as arrears of rent for the period April 2021 to February, 2023. Would the
recovery of unrealised rent and arrears of rent be taxable in the hands of Mr. Anand, and if
so in which year? [SM Q.]
Answer 13
Since the unrealised rent was recovered in the P.Y. 2023-24, the same would be taxable in
the A.Y. 2024-25 under section 25A, irrespective of the fact that Mr. Anand was not the
owner of the house in that year. Further, the arrears of rent was also received in the P.Y.
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Chapter 4: Income from House Property
2023-24, and hence the same would be taxable in the A.Y. 2024-25 under section 25A,
even though Mr. Anand was not the owner of the house in that year. A deduction of 30% of
unrealised rent recovered and arrears of rent would be allowed while computing income
from house property of Mr. Anand for A.Y. 2024-25.
Computation of income from house property of Mr. Anand for A.Y. 2024-25
Particulars `
(i) Unrealised rent recovered 10,000
(ii) Arrears of rent received 69,000
79,000
Less: Deduction@30% 23,700
Income from house property 55,300

Question 14
Ms. Aparna co-owns a residential house property in Calcutta along with her sister Ms.
Dimple, where her sister’s family resides. Both of them have equal share in the property and
the same is used by them for self-occupation. Interest is payable in respect of loan of `
50,00,000@10% taken on 1.4.2022 for acquisition of such property. In addition, Ms. Aparna
owns a flat in Pune in which she and her parents reside. She has taken a loan of `
3,00,000@12% on 1.10.2022 for repairs of this flat.
Compute the deduction which would be available to Ms. Aparna and Ms. Dimple under
section 24(b) for A.Y.2024-25 if both exercises the option of shifting out of the default tax
regime provided u/s 115BAC(1A). [SM Q.]
Answer 14
Computation of deduction u/s 24(b) available to Ms. Aparna for A.Y.2024-25
Particulars `
I Interest on loan taken for acquisition of residential house property at Calcutta `
50,00,000 x 10% = ` 5,00,000
Ms. Aparna’s share = 50% of ` 5,00,000 = ` 2,50,000
Restricted to ` 2,00,000 2,00,000
II Interest on loan taken for repair of flat at Pune` 3,00,000 x 12% = ` 36,000
Restricted to ` 30,000 30,000
Total interest 2,30,000
Deduction u/s 24(b) in respect of (I) and (II) above to be restricted to 2,00,000
Computation of deduction u/s 24(b) available to Ms. Dimple for A.Y.2024-25
Particulars `
Interest on loan taken for acquisition of residential house property at Calcutta `
50,00,000 x 10% = ` 5,00,000
Ms. Dimple’s share = 50% of ` 5,00,000 = ` 2,50,000
2,00,000

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 Chapter 4: Income from House Property
Restricted to ` 2,00,000 2,00,000
Deduction u/s 24(b)

Question 15
Mr. Raman is a co-owner of a house property along with his brother holding equal share in
the property.
Particulars `
Municipal value of the property 1,60,000
Fair rent 1,50,000
Standard rent under the Rent Control Act 1,70,000
Rent received 15,000 p.m.
The loan for the construction of this property is jointly taken and the interest charged by the
bank is ` 25,000, out of which ` 21,000 has been paid. Interest on the unpaid interest is `
450. To repay this loan, Raman and his brother have taken a fresh loan and interest
charged on this loan is ` 5,000.
The municipal taxes of ` 5,100 have been paid by the tenant.
Compute the income from this property chargeable in the hands of Mr. Raman for the A.Y.
2024-25. [SM Q.]

Question 16
Mr. X owns one residential house in Mumbai. The house is having two identical units. First
unit of the house is self-occupied by Mr. X and another unit is rented for ` 8,000 p.m. The
rented unit was vacant for 2 months during the year. The particulars of the house for the
previous year 2023-24 are as under:
Standard rent ` 1,62,000 p.a.
Municipal valuation ` 1,90,000 p.a.
Fair rent ` 1,85,000 p. a
Municipal tax (Paid by Mr. X) 15% of municipal valuation
Light and water charges ` 500 p.m.
Interest on borrowed capital ` 1,500 p.m.
Lease money ` 1,200 p.a.
Insurance charges ` 3,000 p.a.
Repairs ` 12,000 p.a.
Compute income from house property of Mr. X for the A.Y. 2024-25 if he exercises the
option of shifting out of the default tax regime provided u/s 115BAC(1A). [SM Q.]

Question 17
Mr. Vikas owns a house property whose Municipal Value, Fair Rent and Standard Rent are
` 96,000, ` 1,26,000 and ` 1,08,000 (per annum), respectively.
During the Financial Year 2023-24, one-third of the portion of the house was let out for
residential purpose at a monthly rent of ` 5,000. The remaining two-third portion was self-
occupied by him. Municipal tax @ 11 % of municipal value was paid during the year.
The construction of the house began in June, 2016 and was completed on 31-5-2019. Vikas
took a loan of ` 1,00,000 on 1-7-2016 for the construction of building.
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Chapter 4: Income from House Property
He paid interest on loan @ 12% per annum and every month such interest was paid.
Compute income from house property of Mr. Vikas for the Assessment Year 2024-25. if he
exercises the option of shifting out of the default tax regime provided u/s 115BAC(1A).
[SM Q.]

Question 18
Mrs. Rohini Ravi, a citizen of the U.S.A., is a resident and ordinarily resident in India during
the financial year 2023-24. She owns a house property at Los Angeles,
U.S.A., which is used as her residence. The annual value of the house is $ 20,000. The
value of one USD ($) may be taken as ` 75.
She took ownership and possession of a flat in Chennai on 1.7.2023, which is used for self-
occupation, while she is in India. The flat was used by her for 7 months only during the year
ended 31.3.2024. The municipal valuation is ` 3,84,000 p.a. and the fair rent is ` 4,20,000
p.a. She paid the following to Corporation of Chennai:
Property Tax ` 16,200
Sewerage Tax ` 1,800
She had taken a loan from Standard Chartered Bank in June, 2021 for purchasing this flat.
Interest on loan was as under:
Particulars `
Period prior to 1.4.2023 49,200
1.4.2023 to 30.6.2023 50,800
1.7.2023 to 31.3.2024 1,31,300
She had a house property in Bangalore, which was sold in March, 2020. In respect of this
house, she received arrears of rent of ` 60,000 in March, 2024. This amount has not been
charged to tax earlier.
Compute the income chargeable from house property of Mrs. Rohini Ravi for the
assessment year 2024-25 if she exercises the option of shifting out of the default tax regime
provided u/s 115BAC(1A). [SM Q.]
Answer 18
Since the assessee is a resident and ordinarily resident in India, her global income would form part of
her total income i.e., income earned in India as well as outside India will form part of her total
income.
She possesses a self-occupied house at Los Angeles as well as at Chennai. She can take the benefit of
“Nil” Annual Value in respect of both the house properties.
As regards the Bangalore house, arrears of rent will be chargeable to tax as income from house
property in the year of receipt under section 25A. It is not essential that the assessee should continue
to be the owner. 30% of the arrears of rent shall be allowed as deduction.
Accordingly, the income from house property of Mrs. Rohini Ravi for A.Y.2024-25 will be
calculated as under:
Particulars ` `
1. Self-occupied house at Los Angeles
Annual value Nil
Less: Deduction under section 24 Nil

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 Chapter 4: Income from House Property
Chargeable income from this house property Nil
2. Self-occupied house property at Chennai
Annual value
Nil
Less: Deduction under section 24
Interest on borrowed capital (See Note below) 1,91,940
(1,91,940)
3. Arrears in respect of Bangalore property (Section 25A)
Arrears of rent received 60,000
Less: Deduction @ 30% u/s 25A(2) 18,000 42,000
Loss under the head "Income from house property” (1,49,940)

Note: Interest on borrowed capital

Particulars `
Interest for the current year (` 50,800 + ` 1,31,300) 1,82,100
Add: 1/5th of pre-construction interest (` 49,200 x 1/5) 9,840
Interest deduction allowable under section 24 1,91,940

Question 19
Two brothers Arun and Bimal are co-owners of a house property with equal share. The
property was constructed during the financial year 1998-1999. The property consists of eight
identical units and is situated at Cochin.
During the financial year 2023-24, each co-owner occupied one unit for residence and the
balance of six units were let out at a rent of ` 12,000 per month per unit. The municipal
value of the house property is ` 9,00,000 and the municipal taxes are 20% of municipal
value, which were paid during the year. The other expenses were as follows:
`
(i) Repairs 40,000
(ii) Insurance premium (paid) 15,000
(iii) Interest payable on loan taken for construction of house 3,00,000 One of the let out units
remained vacant for four months during the year.
Arun could not occupy his unit for six months as he was transferred to Chennai. He does not
own any other house.
The other income of Mr. Arun and Mr. Bimal are ` 2,90,000 and ` 1,80,000, respectively, for
the financial year 2023-24.
Compute the income under the head ‘Income from House Property’ and the total income of
two brothers for the assessment year 2024-25 if both exercises the option of shifting out of
the default tax regime provided u/s 115BAC(1A). [SM Q.]

Question 20
Mrs. Daya, a resident of India, owns a house property at Panipat in Haryana. The Municipal
value of the property is ` 8,50,000, Fair Rent of the property is ` 7,30,000 and Standard
Rent is ` 8,20,000 per annum. The property was let out for ` 85,000 per month for the
period April 2023 to December 2023.

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Chapter 4: Income from House Property
Thereafter, the tenant vacated the property and Mrs. Daya used the house for self-
occupation. Rent for the months of November and December 2023 could not be realized
from the tenant. Mrs. Daya has not instituted any legal proceedings for recovery of the
unpaid rent.
She paid municipal taxes @ 12% during the year and paid interest of ` 50,000 during the
year for amount borrowed towards repairs of the house property.
You are required to compute her income from house property for the A.Y. 2024-25.
[RTP M-20]
Answer 20
Computation of income from house property of Mrs. Daya for the A.Y.2024-25
Particulars Amount in `
Computation of Gross Annual Value
Expected Rent for the whole year = Higher of Municipal Value of ` 8,20,000
8,50,000 and Fair Rent of ` 7,30,000, but restricted to Standard Rent of
` 8,20,000
Actual rent receivable for the let-out period = ` 85,000 * 9 7,65,000
[Unrealised rent is not deductible from actual rent in this case since
Mrs. Daya has not instituted any legal proceedings for recovery of
unpaid rent. Hence, one of the conditions laid out in Rule 4 has not
been fulfilled]
GAV is the higher of Expected Rent for the whole year and Actual rent 8,20,000
received/receivable for the let-out period
Gross Annual Value (GAV) 8,20,000
Less: Municipal taxes (paid by the owner during the previous year)
= 12% of ` 8,50,000 1,02,000
Net Annual Value (NAV) 7,18,000
Less: Deductions under section 24
(a) 30% of NAV = 30% of ` 7,18,000 2,15,400
(b) Interest on amount borrowed for repairs (Fully allowable 50,000 2,65,400
as deduction, since it pertains to let- out property)
Income from house property 4,52,600

Question 21
Ms. Pihu has three houses, all of which are self-occupied. The particulars of these houses
are given below:
(Value in `)
Particulars House – I House – II House-III
Municipal Valuation per annum 1,30,000 1,20,000 1,20,000
Fair Rent per annum 1,10,000 1,85,000 1,45,000
Standard rent per annum 1,00,000 1,90,000 1,30,000

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Date of completion 30-01-2005 31-07-2008 31.5.2011
Municipal taxes payable during the year (paid 12% 9% 10%
for House II & III only)
Interest on money borrowed for repair of - 75,000 -
property during current year
You are required to compute Pihu’s income from house property for the Assessment Year
2024-25 and suggest which houses should be opted by Pihu to be assessed as self-
occupied so that her tax liability is minimum. [RTP N-20]
Answer 21
In this case, Pihu has more than two house properties for self-occupation. As per section 23(4), Pihu
can avail the benefit of self-occupation (i.e., benefit of “Nil” Annual Value) only in respect of any
two of the house properties, at her option. The other house property would be treated as “deemed let-
out” property, in respect of which the Expected rent would be the gross annual value. Pihu should,
therefore, consider the most beneficial option while deciding which house properties should be
treated by her as self-occupied.
OPTION 1 [House I & II – Self-occupied and House III- Deemed to be let out]
If House I and II are opted to be self-occupied, Pihu’s income from house property forA.Y.2024-25
would be –
Particulars Amount in `
House I (Self-occupied) [Annual value is Nil] Nil
House II (Self-occupied) [Annual value is Nil, but interest deduction would be
available, subject to a maximum of ` 30,000. In case of money borrowed for repair
of self-occupied property, the interest deduction would be restricted to `30,000,
irrespective of the date of borrowal]. (30,000)

House III (Deemed to be let-out) [See Working Note below] 82,600

Income from house property 52,600
OPTION 2 [House I & III – Self-occupied and House II- Deemed to be let out]
If House I and III are opted to be self-occupied, Pihu’s income from house property forA.Y.2024-25
would be –
Particulars Amount in `
House I (Self-occupied) [Annual value is Nil] Nil
House II (Deemed to be let-out) [See Working Note below] 46,940
House III (Self-occupied) [Annual value is Nil] Nil
Income from house property 46,940
OPTION 3 [House I – Deemed to be let out and House II & III – Self-occupied]
If House II and III are opted to be self-occupied, Pihu’s income from house property for A.Y.2024-25
would be –
Particulars Amount in `
House I (Deemed to be let-out) [See Working Note below] 70,000

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Chapter 4: Income from House Property
House II (Self-occupied) [Annual value is Nil, but interest deduction would be
available, subject to a maximum of ` 30,000. In case of money borrowed for
repair of self-occupied property, the interest deduction would be restricted to
`30,000, irrespective of the date of borrowal]. (30,000)

House III (Self-occupied) [Annual value is Nil] Nil

Income from house property 40,000

Since Option 3 is more beneficial, Pihu should opt to treat House – II & III as Self- occupied and
House I as Deemed to be let out, in which case, her income from house property would be ` 40,000
for the A.Y. 2024-25.

Working Note:
Computation of income from House I, II and House III assuming that all are deemed to be let
out
Particulars Amount in Rupees
House I House II House III
Gross Annual Value (GAV)
Expected rent is the GAV of house property
Expected rent= Higher of Municipal Value and Fair Rent but 1,00,000 1,85,000 1,30,000
restricted to Standard Rent
Less: Municipal taxes (paid by the owner during the Nil 10,800 12,000
previous year)
Net Annual Value (NAV) 1,00,000 1,74,200 1,18,000
Less: Deductions under section 24
(a) 30% of NAV 30,000 52,260 35,400
(b) Interest on borrowed capital (allowed in full in
case of deemed let out property) - 75,000 -
Income from deemed to be let-out house property 70,000 46,940 82,600

Question 22
Mr. Naveen and Mr. Vikas constructed their houses on a piece of land purchased by them at
Delhi. The built up area of each house was 1,800 sq. ft. ground floor and an equal area in
the first floor. Naveen started construction on 1-04-2021 and completed on 1-04-2023. Vikas
started the construction on 1-04-2021 and completed the construction on 30-09-2023.
Naveen occupied the entire house on 01-04-2023. Vikas occupied the ground floor on 01-
10-2023 and let out the first floor for a rent of `20,000 per month. However, the tenant
vacated the house on 31-12-2023 and Vikas occupied the entire house during the period
01-01-2024 to 31-03-2024.
Following are the other information
(i) Fair rental value of each unit - ` 1,00,000 per annum (ground floor /first floor)

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(ii) Municipal value of each unit (ground floor / first floor) - ` 72,000 per annum
(iii) Municipal taxes paid by
Naveen – ` 8,000
Vikas – ` 8,000
(iv) Repair and maintenance charges paid by
Naveen – ` 28,000
Vikas – ` 30,000
Naveen has availed a housing loan of ` 15 lakhs @ 12% p.a. on 01-04-2021. Vikas has
availed a housing loan of ` 10 lakhs @ 10% p.a. on 01-07-2021. No repayment was made
by either of them till 31-03-2024. Compute income from house property for Naveen and
Vikas for the previous year 2023-24 if both exercises the option of shifting out of the default
tax regime provided u/s 115BAC(1A). [MTP Q.]

Question 23
Mr. Roxx, a citizen of the Country Y, is a resident but not ordinarily resident in India during
the financial year 2023-24. He owns two house properties in Country Y, one is used as his
residence. Another house property is rented for a monthly rent of $ 18,000. Fair rent of the
house property is $ 20,000. The value of one CYD ($) may be taken as ` 78.
He took ownership and possession of a flat in Delhi on 1.10.2023, which is used for self-
occupation, while he is in India. The flat was used by him for 3 months at the time when he
visited India during the previous year 2023-24. The municipal valuation is ` 4,58,000 p.a.
and the fair rent is ` 3,60,000 p.a. He paid property tax of ` 13,800 and ` 2,800 as
Sewerage tax to Municipal Corporation of Delhi.
He had taken a loan of ` 18,00,000 @9.5% from HDFC Bank on 1st August, 2021 for
purchasing this flat. No amount is repaid by him till 31.03.2024.
He also had a house property in Bangalore which is let out on a monthly rent of ` 40,000.
The fair rent of which is ` 4,58,000 p.a. and Municipal value of ` 3,58,000 p.a. and Standard
Rent of ` 4,20,000 p.a. He had taken a loan of ` 25,00,000 @ 10% from one of his friends,
residing in Country Y for this house. Municipal tax of ` 5,400 is paid by him in respect of this
house during the previous year 2023-24.
Compute the income chargeable from house property of Mr. Roxx for the assessment year
2024-25 if he exercises the option of shifting out of the default tax regime provided u/s
115BAC(1A).

CA Bhanwar Borana 53