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Jain is the owner of 2 residential properties. He gave these houses for rent. The house property details for the tax year 2020/21 are as

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Jain is the owner of 2 residential properties. He gave these houses for rent. The house property details for the tax year 2020/21 are as follows: House no.1: The first house is let furnished with an annual rent of 30,000 payable quarterly in advance. During the tax year 2020/21, The details of expenses incurred and paid by Jain is shown in the below table: Expenses paid 10/4/2020 Water 1.000 1044/2020 Council Tax 1.500 2006-2020 Repairs and Maintenance 2.500 3006/2020 Insurance for the year ended 31152021 1.750 12/7/2020 Purchase of new sofa set 3.250 30/11/2020 Replacement of old fridge 500 the sold the old fridge for 150) 21/2021 Kitchen repair using high standard material. 30/3/2021 Interest on Lean Borrowed for the purchase of the property 3.500 31/5/2021 Pipe repair Expenses incurred during March 2021 1.000 The tenant vacated the house by the end of July 2020 without paying the rent for July 2020. Jain was unable to find the whereabouts of the tenant during the tax year 2020/21 and treated the rent of July 2020 as bad debt. But he was able to find a new tenant from September 2020. House No.2: House No.2 is situated on the outskirts of London, is also let furnished for an annual rent of 15,000 payable by the end of each month. The tenant paid the water tax of 1,000 and Council Tax of 1,500 for House property no.2 Jain had taken loan for the construction of House No.2 and paid 10,000 interest on loan during the year 2020/21. During the year, Jain has replaced the main door of the house with similar quality materials by paying 250. Other information: Jain has received 8,000 Interest on Debenture (Loan notes), 4,000 Interest from Government Bond, 300 from National Savings Certificate, and 200,000 from winnings from Lottery. Jain received a Dividend of 128.000 from a UK Company. During the tax year, Jain has contributed 3,200 to personal pension contributions and donated 1,600 for charity. Required: a) Calculate the total Property Income (Rental Income) for House 1 and House 2 for the tax year 2020/21. Show the workings clearly. (4 marks) b) Calculate the Taxable income of Jain for the tax year 2020/21. (1.5 marks) c) Calculate the Tax Liability and Tax Payable of Jain for the tax year 2020/21. (2.5 marks)

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