# Tax Problem Essay

1256 Words6 Pages
Illustration : House Property Mr. Ryan is an owner of a four-storied building at Mohakhali. Mr Ryan resides with his family in the 2nd floor and all other floors (in each floor there are two flats) are let out at a monthly rent of Tk. 9,000/- per flat. The expected rent of the house is Tk. 9,00,000/. The following expenses were incurred in the income year 2013-14 for that house ; 1. Repair expenses Tk. 50,000; 2. City Corporation Tax Tk. 22,000; 3. Insurance premium Tk. 16,000; 4. Caretaker and Night guard salary Tk. 24,000; 5. Land revenue paid Tk. 2,000; 6. Interest paid to HBFC Tk. 60,000 on Principal amount of Tk 60,00,000/. 7. Alteration cost for ground floor Tk. 30,000; During the year one of the tenants in the ground floor leave the house without paying rent for one month and another one flat was vacant for one month. Compute income from house property for the income year ended 30th June 2014. Solution : Mr. Ryan Income year : Assessment year Calculation of H/P Income | |Tk. |Tk. | |Income from House property (Section-24): | | | | | | | |Actual rental value (9,000 X 12 X 3 X 2) |6,48,000 | | |Expected rent (9,00,000 X 6/8) |6,75,000 | | |Annual Value(higher one) | |6,75,000 | |Less : Admissible expenses : | | | |