Elements of direct tax MCQ of income from house property

Elements of direct tax MCQ of income from house property

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 1. Vacant site lease rent is taxable as _______________________.

a) Income from house property

b) Business income always

c) Income from other sources or business income, as the case maybe

d) Income from other sources or income from house property, as the case may be

2. Treatment of unrealized rent for determining income from house property.

a) To be deducted from expected rent

b) To be deducted from actual rent

c) To be deducted under section 24 from annual value

d) To be deducted from both expected rent and actual rent

3. Municipal taxes to be deducted from GAV should be ___________________.

a) Paid by the tenant during the previous year

b) Paid by the owner during the previous year

c) Accrued during the previous year

d) Paid during the previous year either by tenant or owner

4. Deduction under section 24(a) is ______________________.

a) 1/3rd of NAV

b) repairs actually incurred by the owner

c) 30% of NAV

d) Interest on borrowed capital

5. Interest on borrowed capital accrued upto the end of the previous year prior to the year of completion of

construction is __________________________.

a) allowed as a deduction in the year of completion of construction

b) allowed in 5 equal annual instalments from the year of completion of construction

c) allowed in the respective year in which the interest accrues

d) not allowed

6. The ceiling limit of deduction under section 24(b) in respect of interest on loan taken on 1.4.2019 for repairs of

a self-occupied house is _________________________.

a) INR 30,000 p.a.

b) INR 1,50,000 p.a.

c) INR 2,00,000 p.a.

d) No limit

7. Where an Assessee has two house properties for self-occupation, the benefit of nil annual value will be available

in respect of _____________________________.

a) Both the properties

b) The property which has been acquired/constructed first

c) Any one of the properties, at the option of the Assessee

d) Any one of the properties and once option adopted cannot be changed in subsequent years

8. Leena received INR 30,000 as arrears of rent during the P.Y. 2019-20. The amount taxable under section 25A

would be _____________________________.

a) INR 30,000

b) INR 21,000

c) INR 20,000

d) INR 15,000

9. Vidya received INR 90,000 in May, 2019 towards recovery of unrealized rent, which was deducted from actual

rent during the P.Y. 2017-18 for determining annual value. Legal expense incurred in relation to unrealized rent

is INR 20,000. The amount taxable under section 25A for A.Y.2020-21 would be ____________________.

a) INR 90,000

b) INR 63,000

c) INR 60,000

d) INR 49,000

10. Ganesh and Rajesh are co-owners of a self-occupied property. They own 50% share each. The interest paid by

each co-owner during the previous year on loan (taken for acquisition of property during the year 2004) is INR

2,05,000. The amount of allowable deduction in respect of each co-owner is ________________.

a) INR 2,05,000

b) INR 1,02,500

c) INR 2,00,000

d) INR 1,00,000