AAFM GLO_CWM_LVL_1 Exam - Topic 9 Question 77 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 77
Topic #: 9

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 Evan at Apr 19, 2024, 09:00 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

Nieves

9 months ago

The interest paid for repairs can be deducted, right?

upvoted 0 times

...

Juliana

10 months ago

Wait, she couldn't collect rent for two months? That's rough!

upvoted 0 times

...

Avery

10 months ago

Definitely going with option A, seems accurate.

upvoted 0 times

...

Theodora

10 months ago

I think the fair rent is too low compared to the market!

upvoted 0 times

...

Whitney

10 months ago

The municipal value is Rs. 5,00,000.

upvoted 0 times

...

Desire

11 months ago

I think the municipal tax can be deducted from the income, but I can't recall if there's a limit on the interest for repairs.

upvoted 0 times

...

Marsha

11 months ago

I feel a bit confused about the interest deduction for repairs. Is it fully deductible or just a portion?

upvoted 0 times

...

Audrie

11 months ago

This question seems similar to the practice problem we did on self-occupied properties. I think we need to consider the standard rent as well.

upvoted 0 times

...

Lonna

11 months ago

I remember we discussed how to calculate the annual value based on municipal value and fair rent, but I'm not sure how to handle the months of unpaid rent.

upvoted 0 times

...

Lorean

11 months ago

Okay, let me break this down step-by-step. First, I'll calculate the gross annual rent, then deduct the municipal taxes and interest to get the net income. Should be able to nail this if I stay focused.

upvoted 0 times

...

Rosio

11 months ago

Hmm, there are a lot of details here. I'll need to make sure I don't miss any of the key facts like the rental income, municipal taxes, and interest paid. Gotta be thorough to get this right.

upvoted 0 times

...

Mitzie

11 months ago

This looks like a straightforward house property income calculation problem. I'll need to carefully go through the given information and apply the relevant tax rules to arrive at the final income.

upvoted 0 times

...

Jina

11 months ago

Whoa, this is a lot to take in. I better read through the question a few times to make sure I understand everything before I start crunching the numbers. Don't want to make any silly mistakes on the exam.

upvoted 0 times

...

Shalon

11 months ago

I'm feeling pretty confident about this one. The key is to identify the reason that would not be considered wrongful termination, and that's clearly option A - violation of company policy. The others are all examples of wrongful termination.

upvoted 0 times

...

Frederick

11 months ago

Hmm, I'm a bit unsure about this one. Adding an ENI or using DirectConnect both sound like they could work, but I'm not sure which is the best approach. I'll have to think this through carefully.

upvoted 0 times

...