Q.1 Mr. A rented out the property at monthly rent of Rs.

50,000/- during the Tax Year

2010.n Unadjustable deposit of Rs.200,000/- was received during the year. Property tax of
Rs.5,000/- payable for the year 2009 was not paid till Tax Year 2010.
Two months rent of the year was irrecoverable. The following expenses were incurred against the
Property:
Repairs
Income Tax
Property Tax
Collection Charges.
Interest paid

Rs.100,000
Rs.10,000
Rs.5,000
Rs.3,000
Rs.10,000

Compute total income of Mr. A and calculate his Tax liability

Q.2 Mr. X and Mr. Y own a house which was rented out on 01.07.2004 for three years at a
monthly rent of Rs.20,000/-. During the tax year 2006 un-adjustable allowance of rs.1,00,000/was received and Rs.40,00/- was also recovered on account of unrealized rent of calendar year
2004.
The expenses claimed are:i)
ii)
iii)
iv)
v)
vi)
vii)

Property Tax
Income Tax
Collection Charges
Ground Rent
Unpaid Rent of the year
Interest on Borrowed Capital
Legal charges

Rs. 4,000/Rs. 2,000/Rs.23,000/Rs. 1,500/Rs.50,000/Rs.15,000/Rs. 5,000/-

Mr. X earned salary income of Rs.80,000/- during the year and Mr. Y earned income of
Rs.30,000/- for sale of chemicals.
Compute total income and tax liability of Mr. Z and Y of the tax year 2006.