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Direct Taxation

In this q, it’s given fair rent and municipal valuation for the entire house .. so for unit one , wouldn’t u divide each BU three and multiply by 50% to find reasonably expected rent ?for ex municipal rent is 188000/3 *.5 , as it’s applicable to whole house ,all three units right ? In answer key they haven’t done the same

Answers (6)

Best Answer

In the question, the applicable percentage for each unit mentioned as 50%, 25%,25% respectively. So we consider to calculate the Valuation of house property accordingly. If question is silent about the percentage, at that time we would divide it into 3. So, we will calculate the answer as per percentage to this question.

Laxmi Devi Suresh

In the question, the applicable percentage for each unit mentioned as 50%, 25%,25% respectively. So we consider to calculate the Valuation of house property accordingly. If question is silent about the percentage, at that time we would divide it into 3. So, we will calculate the answer as per percentage to this question.

But it doesn’t say unit .. I understand the percentage .. it clearly says in the question-“other particulars of the house are as follows “ NOT unit

If the house Property is seperated by units we do consider it as 3 units and divide the Municipal value and fair Rent value by 3, but in this particular question they have clearly mentioned that the floor space area is different for the unit which is been rented. So, by making floor space prioritized, as we know floor space matter a lot compared to the unit in real circumstances of our life. Also Municipal valuation is being valuated solely for the house property not for the units.

Sanjay Nandha

If the house Property is seperated by units we do consider it as 3 units and divide the Municipal value and fair Rent value by 3, but in this particular question they have clearly mentioned that the floor space area is different for the unit which is been rented. So, by making floor space prioritized, as we know floor space matter a lot compared to the unit in real circumstances of our life. Also Municipal valuation is being valuated solely for the house property not for the units.

Ohh okay.. so you mean since unit one says floor area of 50%,we consider 50%of municipal rent ?

Mr. Rishabh, aged 65 years and a resident in India, has a total income of rs 4,50,00,000, comprising long term capital gain taxable under section 112 of rs 85,00,000, long term capital gain taxable under section 112A of rs 75,00,000 and other income of Rs 2,90,00,000. What would be his tax liability for A.Y. 2023-24. Assume that Mr. Rishabh has opted for the provisions of section 115BAC. (a) rs 1,41,40,750 (b) rs 1,38,86,990 (c) rs 1,38,84,390 (d) rs 1,39,81,240 Kindly give answer along with explanation.