CAF-2 · Chapter 6 · Question 5 of 15
Mr. A received Rs. 2,400,000 on 1 July 2025 as two years' advance rent for his building. How much of this amount will be chargeable to tax under 'Income from Property' in the tax year 2026?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) Rs. 1,200,000
Explanation
Rent relating to a tax year, whether received or receivable, is chargeable to tax in that specific tax year. Therefore, advance rent must be apportioned, and only the rent relating to the current tax year (Rs. 1,200,000) will be taxed in tax year 2026.
More Income from Property MCQs
- Q7Mr. Saad pays Rs. 150,000 annually to an agency for rent collection and administration of his plaza. His gross rent chargeable to tax for…
- Q8Mr. Dawood incurred Rs. 180,000 as actual repair and maintenance expenses on his rented property during the year. The gross rent…
- Q9Mr. Z received a non-adjustable advance of Rs. 1,000,000 from a tenant in tax year 2023. The tenant vacated the premises in January 2026…
- Q10Which of the following local taxes paid in respect of a rented property is NOT allowed as a deduction against 'Income from Property'?
- Q11If a taxpayer claims an admissible deduction for an expense (e.g., insurance premium) but fails to actually pay that liability within a…