Under Section 22 ITA 1961, INCOME FROM HOUSE PROPERTY is computed on:
Answer & Solution
Correct answer: B.
1. Section 22 Income Tax Act 1961: 'The annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner... shall be chargeable to income-tax under the head 'Income from house property'.'
2. Section 23 defines ANNUAL VALUE: the sum for which the property might reasonably be expected to let from year to year — usually higher of actual rent or fair rent; subject to deductions for vacancy, etc.
3. Section 24: deductions allowed — (a) statutory 30% of net annual value; (b) interest on borrowed capital up to Rs 2 lakh for self-occupied, no limit for let-out.
4. Section 25: amounts not deductible.
5. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Sections 22-27_
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