An individual owns one house, which he cannot occupy because he works and lives in rented premises in another city. The house is not let and he derives no other benefit from it. What is its annual…
Question and options
An individual owns one house, which he cannot occupy because he works and lives in rented premises in another city. The house is not let and he derives no other benefit from it. What is its annual value under the Income-tax Act, 2025?
The municipal value
The expected rent
Nil
The expected rent less 30%
Answer and explanation
Section 21(6) of the Income-tax Act, 2025 takes the annual value of a house as nil both where the owner occupies it for his residence and where he cannot actually occupy it for any reason, provided it is not let and yields no other benefit (section 21(7)). The expected rent would apply only to a house that does not qualify.
Practice for these exams
-
All India Bar Examination (AIBE)
Subject revision
See pack details on LawMint.net -
IIT Kharagpur LL.M. Entrance
Subject revision
See pack details on LawMint.net -
CLAT PG
Subject revision for a passage-based exam
-
AILET PG
Subject revision
Related exam syllabi
More solved explanations in Income tax - basic concepts, residence & heads of income
- Who can make up a body of individuals for income-tax purposes?
- Under section 99(1)(c) of the Income-tax Act, 2025, income arising to a minor child is generally included in the income of a parent. This does NOT apply to the…
- For tax year 2026–27, at what rate does section 198 of the Income-tax Act, 2025 tax long-term capital gains on listed equity shares, on which securities…
- B, a chartered accountant, is employed by X Ltd as its internal auditor on a monthly remuneration, and at B’s request the company describes the payment as an…
- Which Companies Act, 2013 schedule ordinarily governs the profit-and-loss statement used for MAT book profit for a company without a prescribed sectoral format?