Following are the information for a house property Municipal value Rs...

Home / Commerce / Income Tax And Corporate Tax / Question
Examveda
Examveda

Following are the information for a house property:
Municipal value : Rs. 4,50,000
Fair rental value : Rs. 5,00,000
Standard rent : Rs. 4,80,000
Actual rent : Rs. 4,20,000
What is the gross annual value of the house property?

A. Rs. 4,80,000

B. Rs. 5,00,000

C. Rs. 4,20,000

D. Rs. 4,50,000

Answer: Option A

Solution (By Examveda Team)

To determine the gross annual value (GAV) of a house property, we consider the following values: Municipal Value: Rs. 4,50,000
Fair Rental Value: Rs. 5,00,000
Standard Rent: Rs. 4,80,000
Actual Rent Received: Rs. 4,20,000

Step-by-Step Calculation: Step 1: Compare the Municipal Value and the Fair Rental Value and take the higher value.
Higher Value (Municipal vs. Fair Rental): Rs. 5,00,000

Step 2: Compare the value obtained in Step 1 with the Standard Rent and take the lower value.
Lower Value (Higher Value from Step 1 vs. Standard Rent): Rs. 4,80,000

Step 3: Compare the value obtained in Step 2 with the Actual Rent Received and take the higher value.
Higher Value (Lower Value from Step 2 vs. Actual Rent): Rs. 4,80,000

Therefore, the gross annual value of the house property is Rs. 4,80,000.

This Question Belongs to Commerce >> Income Tax And Corporate Tax

Join The Discussion

Comments (2)

  1. Neeraj Yadav
    Neeraj Yadav:
    1 year ago

    by comparing the actual rent and expected rent, we get that 5 lakh is greater than 480000..
    hence the answer is 5 lakh

  2. Shristi Yadav
    Shristi Yadav:
    1 year ago

    it should be B 5,00,000

Related Questions on Income Tax and Corporate Tax

List out from the given statements the important ethical principles that a business should follow:
1. To take the necessary action for the development of the concerned industry or business
2. Pay taxes and discharge other obligations promptly
3. To ensure the best utilisation of the human resources
4. Refrain from secret kickbacks or pay-offs to customers, suppliers, administrators, etc.
5. Ensure payment of fair wages and fair treatment of employees

A. 3, 4 and 5

B. 2, 4 and 5

C. 1, 2 and 3

D. 1, 3 and 5

  View Answer
  View Answer
  View Answer

Statement (I): If the tax liability has been reduced within the legal framework, it is tax planning.
Statement (II): If tax liability has been reduced to get benefit of deduction available under the income tax, it is called tax evasion.
In the context of the above two statements, which one of the following is correct?

A. Both the Statements (I) and (II) are correct

B. Statement (I) is correct, but (II) is incorrect

C. Both Statements (I) and (II) are incorrect

D. Statement (II) is correct, but (I) is incorrect

  View Answer

Read More: MCQ Type Questions and Answers