Direct Tax question:

I am confused with the question given in ICWA Inter CC question:

Do i need to calculate income from house property for Income tax OR valuation of house property ??

Question: From the following data furnished by XYZ, determine the income of house property 31/03/2008 :

1. Annual value as per municipal records 1,60,000
2. Rent received from tenant 1,44,000
3. Municipal Tax paid by tenant on behalf of XYZ 10,000
4. Interest on Borrowing Cost 10,000
5. Repairs on property paid by tenant 6,000
6. Refundable Deposit collected from tenant as a security deposit  which does not carry any interest 3,00,000
7. The difference between unbuilt area & specified area is 10%

Please help !