Taxation - Income TaxQuestion 5598 of 146
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2. Compute income from house property in the hands of Mr. Gopal.

Options

A` 75,000
B` 1,05,000
C` 73,500
D` 52,500
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Correct Answer

Option D` 52,500

All Options:

  • A` 75,000
  • B` 1,05,000
  • C` 73,500
  • D` 52,500

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Detailed Solution & Explanation

To compute the income from house property in the hands of Mr. Gopal for the Assessment Year 2025-26:

1. **Arrears of Rent / Unrealized Rent u/s 25A:**
* Mr. Gopal received ₹ 75,000 on 12.11.2024 as rent in arrears from an old tenant, which was treated as unrealized rent in earlier years.
* Under Section 25A of the Income-tax Act, 1961, unrealized rent or arrears of rent received subsequently is taxable under the head "Income from house property" in the financial year of receipt, whether or not the assessee is the owner of the property in that year.
* A mandatory standard deduction of 30% is allowed u/s 25A(2).
* Taxable unrealized rent:
75,000(30₹ 75,000 - (30\\% \\times ₹ 75,000) = ₹ 75,000 - ₹ 22,500 = ₹ 52,500

2. **Rent from Residential Plot:**
* Mr. Gopal earned ₹ 30,000 as rent from the vacant residential plot in the last quarter of the previous year 2024-25.
* Rent from a vacant plot (where there is no building or land appurtenant to a building) is not taxable under the head "Income from house property". Instead, it is taxable under the head "Income from other sources". Thus, taxable house property income from this plot is **Nil**.

3. **Total House Property Income:**
* Total taxable income under the head "Income from house property":
textHPIncome=52,500+0=52,500\\text{HP Income} = ₹ 52,500 + ₹ 0 = ₹ 52,500

Hence, **Option D** is the correct answer.

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