Category: Income from House Property

In the case of a Self-Occupied House Property, the Procedures for determining Taxable Income is as follows: 1. Features to regulate Tax Incidence on Self-Occupied House Properties: Before steps for computation are explained, it would be advisable to highlight the following features which regulate tax incidence on self-occupied properties: Where […]

Income from a Let-Out House Property is determined as under: 1. Gross annual value Xxxx 2. Less : Municipal Taxes Xxxx Net Annual Value Xxxx 3. Less : Deduction under Section 24 Xxxx – Standard Deduction Xxxx – Interest on borrowed Capital Xxxx Income from House Property Xxxx 1. Gross […]

As per section 23(1)(a) the Annual Value of any property shall be the sum for which the property might reasonably be expected to be let from year to year. It may neither be the actual rent derived nor the municipal valuation of the property. It is something like notional rent […]

Under section 10 of the Income-tax Act 1961 following incomes from house property are exempted from tax. These incomes are not to be included in the total income of assessee. Hence no tax is payable on such incomes. These incomes are : – 1. Agricultural House Property [Section 2(1)(c)]. Income […]

The income from houses, buildings, bungalows, godowns etc. is to be computed and assessed to tax under the head “Income from house property”. The income under this head is not based upon the actual income from the property but upon notional income or the annual value of that building. The […]