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CA Intermediate · Taxation · Income from House Property

Mr. Iyer owns a house in Kochi let out throughout tax year 2026-27. Rent received is Rs 5,00,000, which is higher than expected rent. Municipal taxes paid by him during the year are Rs 20,000. He has no loan. What is his income from house property?

Income from house property is Rs 3,36,000. Municipal taxes paid of Rs 20,000 are deducted from the GAV of Rs 5,00,000 to get NAV of Rs 4,80,000, and 30% of NAV is allowed as standard deduction, leaving 70% of NAV.

  1. ARs 3,36,000Correct
  2. BRs 3,50,000
  3. CRs 3,60,000
  4. DRs 4,80,000

Explanation

GAV = 5,00,000. Less municipal taxes paid 20,000 gives NAV 4,80,000. Standard deduction 30% = 1,44,000. Income = 4,80,000 - 1,44,000 = 3,36,000. Check: 4,80,000 x 70% = 3,36,000. Rs 3,50,000 wrongly takes 30% on GAV without removing tax.

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