AAFM Exam GLO_CWM_LVL_1 Topic 6 Question 82 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 82
Topic #: 6

Smt. Rajalakshmi owns a house property at Adyar in Chennai. The municipal value of the property is Rs. 5,00,000, fair rent is Rs. 4,20,000 and standard rent is Rs. 4,80,000. The property was let-out for Rs. 50,000 p.m. up to December 2010. Thereafter, the tenant vacated the property and Smt. Rajalakshmi used the house for self-occupation. Rent for the months of November and December 2010 could not be realized in spite of the owner's efforts. She paid municipal Texas @12% during the year. She had paid interest of Rs.25,000 during the year for amount borrowed for repairs for the house property. Compute her income from house property for the A.Y. 2012-13.

ARs 281500

BRs 275500

CRs 269000

DRs 265400

Show Suggested Answer

Suggested Answer: C

by Audrie at Jun 21, 2024, 10:41 PM

Limited Time Offer

25%

Off

Get Premium GLO_CWM_LVL_1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Devora

5 months ago

I'm not sure, but I think the answer might be C) Rs 269000 considering the municipal taxes paid.

upvoted 0 times

...

Kimberely

5 months ago

If I were the owner, I'd just sell the property and invest in a nice beach house. Less hassle, more sun! But since that's not an option, I'll go with option A - Rs 281,500. Hopefully, the owner can at least deduct the interest payments from their taxes.

upvoted 0 times

Melina

4 months ago

Yes, I agree. It's important to take advantage of any deductions available to reduce the tax liability.

upvoted 0 times

...

Luisa

4 months ago

I think option A is the correct answer. The interest payments for repairs should be deductible from the rental income.

upvoted 0 times

...

Monte

5 months ago

Hold up, did the question say the owner used the house for self-occupation after the tenant left? That's a game-changer! I bet the owner's going to get some sweet tax deductions. I'm going with option D - Rs 265,400. Gotta love those loopholes!

upvoted 0 times

...

Svetlana

5 months ago

I agree with Loise, the answer should be A) Rs 281500 because of the interest paid for repairs.

upvoted 0 times

...

Wilburn

5 months ago

This is a classic case of real estate woes. The owner has to deal with non-paying tenants, municipal taxes, and interest payments. And they say owning property is a passive income stream! I'm going to go with option C - Rs 269,000, just to be on the safe side.

upvoted 0 times

Ivan

4 months ago

I agree, option C seems like a safe bet considering all the factors involved in this case.

upvoted 0 times

...

Bettyann

4 months ago

It's a lot to consider when owning a property. Option C - Rs 269,000 seems like a reasonable choice.

upvoted 0 times

...

Alba

5 months ago

Yes, those values definitely play a role in determining the income. And don't forget about the municipal taxes and interest payments.

upvoted 0 times

...

Jose

5 months ago

I think the fair rent and standard rent are important factors in calculating the income from the property.

upvoted 0 times

...

Merlyn

5 months ago

I disagree, I believe the answer is B) Rs 275500.

upvoted 0 times

...

Loren

5 months ago

Hmm, this seems like a tricky one. I'm not sure if I can trust the tenant who didn't pay the last two months' rent. Maybe we should have a clause in the lease agreement that allows the owner to withhold the security deposit in such cases. Anyway, I'm going with option B - Rs 275,500.

upvoted 0 times

Sherron

5 months ago

I agree, it's always important to have a strong lease agreement in place to protect the owner's interests.

upvoted 0 times

...

Bernardo

5 months ago

I think the owner should have been more cautious with the tenant's payment history.

upvoted 0 times

...

Tammara

5 months ago

I agree, those values play a key role in determining the income from the house property.

upvoted 0 times

...

Beckie

5 months ago

I think the fair rent and standard rent values are important to consider in this calculation.

upvoted 0 times

...

Loise

6 months ago

I think the answer is A) Rs 281500.

upvoted 0 times

...

Golda

6 months ago

Alright, let's see. The municipal value is 5 lakhs, the fair rent is 4.2 lakhs, and the standard rent is 4.8 lakhs. The property was let out for 50,000 per month until December 2010, and then the tenant vacated. The owner couldn't realize the rent for November and December 2010, and paid 12% municipal tax and 25,000 in interest. I'm going with option A - Rs 281,500.

upvoted 0 times

Maybelle

5 months ago

Yes, I also believe it is A) Rs 281,500.

upvoted 0 times

...

Theresia

5 months ago

I agree, option A seems to be the correct answer.

upvoted 0 times

...

Tamekia

5 months ago

I think the answer is A) Rs 281,500.

upvoted 0 times

...