ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Rental income from a property is taxed under Section 24 in the owners’ hand under the heading ‘income from home property. ‘ The rent received by leasing out unoccupied land, on the other hand, is taxed under ‘income from other sources. ‘ Income from the home property only gets taxed on the land part of a structure.
Detailed explanation-2: -Currently, the long term capital gain tax rate on property is set at 20% with the addition of cess and surcharge.
Detailed explanation-3: -The rate of LTCG Tax is 20%. This is over and above the regular income tax payable by the seller, on the income earned through salary or business profit. Similar to SCTG, the LTCG is the difference between the purchase price and sale price of the property.
Detailed explanation-4: -ROI = (Investment Gain − Investment Cost) ÷ Investment Cost. ROI = Net Profit ($200, 000 − $150, 000) ÷ Total Investment ($150, 000) ROI = (Annual Rental Income − Annual Operating Costs) ÷ Mortgage Value. 17-Feb-2023