House Property

Owner and Deemed Owner

An Individual shall be considered as owner of a Property, when the document of title to the property is registered in his name. The Assessee must be the owner of such property. An Owner is a person who is entitled to receive Income from the Property in his Own Right. The requirement of registration of…

Situations when Income from House Property is exempt from Tax

Sec Income from Property Held 10(1) Income from any Farm House forming part of Agricultural Income 10(19A) An Ex-Ruler for his occupation (Palace) 10(20) Local Authority 10(21) Approved Research Association 10(23B) Institution for the development of Khadi and Village Industries 10(23BB) Khadi and Village Industries Boards 10(23BBA) A Body or Authorìty for administering Religious or…

House Property held as Stock in Trade

If the property constitutes Stock-in-Trade of a business or the business of the Assessee is to let out house properties, the Income is to be charged only under the head “Income from House Property”. Exceptions Letting out is a supplementary to the main business: If the property is let out with the object of carrying…

Composite Rent

Composite Rent is the rent charged in cases where the assessee does not merely let-out a property, but also provides other facilities like Furniture, Plant and Machinery, Lift, Security, Power Back—up, etc. Objective of letting out:  If from agreement between two parties, it is clear that primary object was to let out portion of a…

Conditions for taxing Income under the head House Property

Section 22 provides for taxation of ‘annual value’ of a property consisting of any buildings or lands appurtenant thereto, of which the assessee is owner, under the head “income from House Property”. Tax imposed under section 22 is a tax on ‘annual value’ of house property and is not a tax on “House Property”. However,…