Tax Laws MCQ on Income from House Property: Check the below Tax Laws MCQ on Income from House Property with Answers Pdf free download. Tax Laws MCQ on Income from House Property Questions for Tax Laws with Answers were prepared based on the latest exam pattern. We have provided Tax Laws MCQ on Income from House Property with Answers to help students understand the concept very well. Students should practice Income from House Property – CS Executive Tax Laws MCQ Questions with Answers based on the latest syllabus.

Tax Laws MCQ on Income from House Property

1. When a share of each co-owner in house property is not definite, the income from such property shall be:
(A) Taxed equally
(B) Exempt from tax
(C) Taxed as an association of persons
(D) Taxed as the body of individuals 

2. Find out from the following income derived from house property which is being exempt from Income Tax:
(A) Income from the property of a trust for charitable or religious purposes
(B) Income from the property of a housing society
(C) Income from the property of a trade association
(D) Income from the property of a sports association

3. Santhanam purchased in October 2020, a flat in Chennai, to be used for his own residential purposes with the financial assistance of a housing loan taken from PNB Housing Finance Ltd. He has paid interest on such loan till March 2021 of ₹ 1,78,780. The amount of interest paid on such loan allowed u/s 24 is:
(A) ₹ 1,25,000
(B) ₹ 1,78,780
(C) ₹ 1,50,000
(D) None of the above

4. Narendra engaged in retail trade let out his fully furnished house with lift, air conditioners, fridge, security staff, and gardener at a rent of ₹ 1,00,000 per month. The agreement did not provide for separate rent for various facilities but is a composite agreement. The amount received by him would be chargeable to tax under the head:
(A) Other Sources
(B) Business Income
(C) Income from House Property
(D) Capital Gains

5. Sajal is the owner of a house property covered under the Rent Control Act. Municipal value ₹ 30,000, actual rent ₹ 25,000, fair rent ₹ 36,000 and standard rent is ₹ 28,000. The gross annual value of the house property will be:
(A) ₹ 30,000
(B) ₹ 25,000
(C) ₹ 36,000
(D) ₹ 28,000

6. The construction of a house was completed on 31st January 2021. The owner of the house took a loan of ₹ 20,00,000 @ 696 p.a. on 1st May 2020 In this case the deduction allowable for the previous year 2020-21 towards interest on borrowings is:
(A) ₹ 22,000
(B) ₹ 24,000
(C) ₹ 1,10,000
(D) None of the above 

7. Composite rent of let-out house property is taxable as:
(A) Profits and gains from business or Profession
(B) Income from other sources
(C) Income from house property
(D) Either (A) or (B) above depending upon certain conditions

8. The municipal value of a property is ₹ 2,10,000. Fair rent is ₹ 1,90,000 standard rent is ₹ 1,80,000 and the actual rent is * 2,40,000. The gross annual value of the property would be –
(A) ₹ 1,80,000
(B) ₹ 1,90,000
(C) ₹ 2,40,000
(D) ₹ 2,10,000

9. Rohit owns a house property in Delhi which he wants to give on rent. He seeks your help to determine the reasonable expected rent when monthly municipal value is ₹ 20,000, fair rent ₹ 25,000, and standard rent ₹ 22,000. The reasonable expected rent will be computed with reference to the following amount p.m.
(A) ₹ 22,000
(B) ₹ 20,000
(C) ₹ 25,000
(D) None of the above

10. Mr. Zen owns a flat in Mumbai which was let out by him in the previous year 2020-2021 on rent of ₹ 20,000 p.m. up to December 2020 and for ₹ 30,000 p.m. Thereafter, the annual municipal value is ₹ 3,00,000, Fair Rent is ₹ 2,50,000 and Standard Rent is ₹ 2,90,000. The Gross Annual Value of the flat shall be taken as:
(A) ₹ 2,70,000
(B) ₹ 3,00,000
(C) ₹ 2,50,000
(D) ₹ 2,90,000

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By Team Learning Mantras