Income From Property

Question 1

What is rent

Answer 1

Any amount received or receivable by the owner of a land or a building as consideration for the use or occupation of the land of or building or

any forfeited deposit under a contract for the sale of land or building

Question 2

Which rent comes under ifos

Answer 2

Any rent received by a person against lease of a building together with plant and machinery comes under the head income from other sources

Where rent includes amount received for provision of amenities utilities or any other service connected with renting of building it comes under the head ifos

Question 3

Higher of what two values is added in rental income

Answer 3

-Actual rent
-Fair market rent

Question 4

Repair deduction ifp

Answer 4

Allowance equal to one fifth of rent chargeable to tax

Question 5

When is repair allowance not allowed

Answer 5

-when only open plot is given on rent

in case where forfeited deposit is received in case of open plot/ land

where forfeited deposit is received in case of contract for sale of house building

Question 6

Deductions b to d

Answer 6

Insurance premium paid to insure building

Local rate cess tax or charge paid or payable ok property or rent from property to local authorities or government excluding income tax

Ground rent paid or payable for the property