5. a. Discuss the provision of annual value and repair & maintenance cost of rental building.

2 b. Mr. Hossain is the owner of a Six-storied building at Malibagh. In each floor of the building there are two flats. Mr. Hossain resides with his family in one floor containing two flats. One flat of another floor is using by his son-in- law and paying nothing for it. All other flats were let out for residential purpose at a monthly rent of Tk. 20,000 per flat. During the year, the owner has borne the water and gas bill of the tenants amounting to Tk. 30,000. The municipal value of the house is Tk. 3,000,000. Expenses related to the house property for the year were: repair expenses Tk. 600,000; city corporation tax Tk. 42,000; caretaker & night guard salary Tk. 120,000; land revenue paid Tk. 9,000; mortgage interest paid Tk. 45,000; installation of generator Tk.1,000,000. During the year one of the tenants in the ground floor left the house without paying rent for one month. Mr. Hossain even after taking necessary legal actions failed to collect this rent. However, advance received from the tenant was Tk. 50,000 and refunded advance Tk. 25,000 to another tenant at the time of leaving the house. Moreover, due to Covid pandemic one flat was vacant for two months. Required: Compute taxable income under the head of income from house property.

Answer rating: 100% (QA)

Income from house property is an important source of income for many people For the purpose of computation of income from house property house property means any building or land appurtenant thereto w... View the full answer