Question

Arrange the following steps of computation of Income from House Property in Correct order:
A. Deductions under Section 24 of Income Tax Act
B. Computation of Net Annual Value
C. Deduction of Municipal Taxes paid
D. Computation of Gross Annual Value
E. Computation of Expected Rent

• A. B, E, A, C, D
• B. D, E, C, A, B
• C. E, D, B, C, A
• D. E, D, C, B, A

Hint:

Logic Tip: Income from House Property follows sequence — Expected Rent → GAV → Municipal Taxes → NAV → Section 24 deductions.

Answer 1

The Correct Option is D

Step 1:
The computation begins with determination of expected rent. \[ E = \text{First Step} \]

Step 2:
After expected rent, Gross Annual Value (GAV) is computed. \[ D = \text{Second Step} \]

Step 3:
Municipal taxes actually paid are deducted from GAV. \[ C = \text{Third Step} \]

Step 4:
After municipal taxes: \[ \text{Net Annual Value (NAV)} \] is obtained, and then deductions under Section 24 are allowed. Correct sequence: \[ E,\; D,\; C,\; B,\; A \] Hence, the correct answer is: \[ \boxed{\text{(4) E, D, C, B, A}} \]