Quiz on Income Tax-2

Mr. A , is the owner of a building. Such building is leased out by Mr. A from which he earns a rental income of Rs. 20,000 per month. The income from such property would be chargeable under the head ‘’Income from house property’’ because

• The property consists of buildings and land appurtenant thereto ;

• Mr. A is the owner of such property

• Both A and B

• None of the above

A, carries on business in a premise, comprising of building which is owned by him and which is used for the purpose of carrying on business or profession whose profits are chargeable to tax. The deemed value of income from such property would be chargeable to Tax under the head :

• Income from house property

• Income from salaries

• Income from other sources

• None of the above

Ajay’s minor daughter was married to a renowned professional. When she came after marriage, he transferred his house property to his minor married daughter for Rs. 5,00,000 when the fair value of such property was Rs.50,00,000 . Who will be considered as the owner of such house property for tax purpose ?

• Ajay

• Minor married daughter

• Both A & B equally

Sanjay, did not had a very understanding wife, and due to prolonged differences of opinion and fights on a regular basis, they decided to live apart. As a precondition for such an agreement to live apart, Sanjay transferred his house property to his spouse, which had a fair value of Rs.50,00,000 . The property yielded a rent of Rs. 3,00,000 after the date of transfer. The income taxable in the hands of Sanjay on account of such property before any deductions would be :

• Rs. 3,00,000

• Rs. Nil

• Rs. 1,50,000

• Rs. 2,10,000

Shyam is engaged in the business of letting out residential flats to various tenants on a monthly basis. He earns a monthly income of Rs. 6,00,000 from such flats. Income which is chargeable to Tax under the head Income from House Property in the case of Shyam before any deductions would be

• Rs. 72,00,000

• Rs. Nil , as it is income from profits and gains of Business and profession

• Rs. 60,00,000

• Rs. 65,00,000

Rental income from a property being building or land appurtenant thereto of which the taxpayer is ________ is charged to tax under the head “Income from House Property”.

• Owner

• Power of attorney holder

• Sub-tenant

• Holder in due course

Rental income received by a tenant from sub-letting is also charged to tax under the head “Income from House Property”.

• True

• False

If an individual transfers his or her house property to his/her spouse (not being a transfer in connection with an agreement to live apart) or to his/her minor child (not being married daughter) without adequate consideration, then the _______ will be deemed as owner of the property.

• Transfree

• Transferor

In a case where, letting out of building and letting out of other assets are separable, rent of building will be charged to tax under the head ___________ and rent of other assets will be charged to tax under the head __________.

• Income from House Property, Income from House Property

• Profits and gains of business and profession, Income from House Property

• Income from House Property, Profits and gains of business and profession” or “Income from other sources” (as the case may be)

• Profits and gains of business or profession, Income from other sources

In case of a property covered under the Rent Control Act, reasonable expected rent will be __________ municipal value or fair rent subject to standard rent of the property.

• Lower of

• Equal to

• Higher of

• Average of