What is considered ‘House Property’ for the purpose of Income Tax?
‘House Property’ implies ‘a
building or buildings with lands connected thereto’. It means that it should be
a superstructure which is capable of occupation, and the building must be the
most prominent part of the said property comprising of land and building. Where
the property comprises a mere vacant land or site, the income from that will
not be brought under the head ‘Income from house property’ but will be assessed
as income from ‘other sources’.
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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 ...
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 ...
While computing income chargeable to tax under the head “Income from house property” in case of a let-out property, how much interest on housing loan can be claimed as deduction?
In case of a let-out property, there is no limit on the quantum of interest which can be claimed as deduction while computing income from house property.
I have rented out a part of my house property and I stay in another part of the same house property. In such case, how will the income be computed?
In this case, the two parts of the house shall be considered as independent house properties or taxable units. · The part in which you are staying shall be treated as a self-occupied property and the income shall be computed accordingly. ...
How is the income from house property computed?
The income from house property is computed after making certain deductions to the annual value or annual lettable value of the property. The first and most important step is the computation of annual value (AV) or (ALV) of the said property. The ...