Under the Income Tax Act, if a house property is self-occupied, what is the Annual Value of that property? MCQ with Answer and Explanation

Under the Income Tax Act, if a house property is self-occupied, what is the Annual Value of that property?
A. The municipal valuation of the property
B. Nil (Zero)
C. The fair rent of the property
D. The actual rent received
Answer: Option B
Solution (By JKSSB Mock Tests)
Under Section 23(2) of the Income Tax Act, if a house property is used for the owner's own residence (self-occupied), its Annual Value is taken as Nil (Zero).

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Practice More Accountancy and Book Keeping Questions

Question #1
Under the Companies Act 2013, a 'Small Company' is defined based on paid-up share capital and turnover. As per the latest amendments, the paid-up share capital should not exceed:
A. ₹10 Crores
B. ₹50 Lakhs
C. ₹4 Crores
D. ₹1 Crore

Correct Answer: Option C


Explanation:
The Companies (Specification of Definition Details) Amendment Rules, 2021, increased the paid-up share capital limit for a Small Company to ₹4 Crores (or ₹10 Crores as per turnover, whichever is lower, but the capital limit was raised to ₹4 Cr).

Question #2
A bank reconciliation statement is prepared to reconcile the difference between:
A. Cash book (bank column) and pass book
B. Cash book and sales book
C. Cash book and petty cash book
D. Pass book and purchase book

Correct Answer: Option A


Explanation:
BRS reconciles the bank balance as per cash book (bank column) with the balance as per bank statement (pass book).

Question #3
Integrated Reporting (IR) differs from traditional financial reporting because it:
A. Combines financial and non-financial data to show how value is created over time
B. Is used strictly for internal management
C. Eliminates the balance sheet
D. Only reports cash flows

Correct Answer: Option A


Explanation:
IR provides a holistic view of the organization by interconnecting financial performance with sustainability, capitals (human, natural), and strategy.