Question
Two brothers Arun and Bimal are co-owners of a house property with equal share. The property was constructed during the financial year 1998-1999. The property
Two brothers Arun and Bimal are co-owners of a house property with equal share. The property was constructed during the financial year 1998-1999. The property consists of eight identical independent units and is situated at Cochin. During the financial year 2018-19, each co-owner occupied one unit for residence and the balance of six units were let out at a rent of Rs.10,000 per month per unit. The municipal value of the house property is Rs. 8,00,000 and the municipal taxes are 20% of municipal value, which were paid during the year. The other expenses were as follows: `Repairs Rs. 40,000 Insurance premium (paid) Rs. 15,000 Interest payable on loan taken for construction of house Rs. 3,00,000 One of the let-out units remained vacant for four months during the year
Arun could not occupy his unit for six months as he was transferred to Chennai. He does not own any other house. The other income of Mr. Arun and Mr. Bimal are Rs. 2,90,000 and Rs. 1,80,000, respectively, for the financial year 2019-20. Compute the income under the head 'Income from House Property' and the taxable income of two brothers for the assessment year 2019-20. Also explain when a person deemed to be the owners of the house property?
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