How is income from a house property as per the Income tax Act different from the ‘rental income’ received from house property?
The rental income is
received by a person against renting out of his property. The computation of income
from house property is NOT solely dependent on this rental income. If you are
not receiving rental income, it does not mean that the House Property cannot
generate income. The Income from house property is computed as per the relevant
provisions of the Income tax Act after certain deductions from the rental
income received by the person.
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What is classified as “Income from house property”?
When you own a property, which may be a building, flat, house, bungalow, gala, factory building or a shop, it may or may not yield a rental income. Such income which you have received or could have received if the property was given on rent is ...
Under which head is the rental income from a shop charged to tax?
Shop being a building, rental income received from a shop is charged under Income from House Property.
My spouse and I jointly own a house in which both of us have invested equally from individual and independent sources. Can we split the rental income received between the two of us to be taxed in individual hands?
Yes, Rental Income received by each co-owner can be taxed proportionately and taxed in the hands of both independently as per your share in the said property.
What are the different types of income that qualify as Salary under the Income Tax Act?
As a salaried person, you may be getting income in many forms. For the purpose of tax, the incomes that qualify as Salary are listed below: Salary: This is generally a monthly remuneration extended by the employer to the employee in exchange for the ...
I have transferred my house property to my spouse as per the terms of the agreement of living separately from each other. In whose hands will the income from the house property be taxed?
As per section 27(i) of the IT Act, your spouse shall be the owner of the house property and hence the income shall be taxed in her/his hands, since the property stands transferred in connection with an agreement to live apart.