Wednesday, December 25, 2013

Income From House Property Full Information

Every money receipt by a person is not chargeable to tax. Section 14 of the Act specifies five heads of income on which tax can be imposed under the Income tax Act. In order to be chargeable, an income has to be brought under one of these five heads. The heads are (i) salaries (ii) Income from House property (iii) profits and gains of business or profession (iv) capital gains and (v) income from other sources.

In common parlance, property is understood in wide sense.It is not only the thing which is the subject matter of ownership but is taken to mean ‘dominon’ or right of ownership or even partial ownership.

A) What do you mean by Income from House Property ?
a)Unlike the other heads of income, Income from house property is a notional income based on a concept called Annual value . This is the value a property is expected to fetch if it is let out. It may be more than the actual rent being received if let out. If it is not let out the expected market/fair rent will be considered as annual value for the purpose of taxation. Property includes the building and the land surrounding it.

B) If a property is not a residential house, can its income still be considered as income from house property?

a) Yes, provided the property is not used for business purpose.

C)What are the conditions for taxing income from a property under this head?
The person should own the property.

D) Can interest paid on hand loans taken from friends and relatives be claimed as deduction while calculating house property income?
a) Yes.

E) I have two houses. One is a farmhouse that I visit on weekends and the other is in the city that I use on weekdays. Is it correct to treat both these residences as self occupied?
a) No. You can claim any one as self occupied. Incomes from buildings situated in or near agricultural farm are considered exempt provided they are used for dwelling of the farm owner/cultivator or for related purposes of storage etc.

F) I own two houses both of which are occupied by my family and me. Is there any tax implication?
a) Yes. As already mentioned in the answer to Q.No: 87, income from house property is a notional income and only in respect of one residential unit, if self occupied, it will be considered as nil . In case of the other residential unit, marketable rental value will have to be offered for tax.

G) My spouse and I are joint owners of a house constructed by availing housing loan separately. Are we both individually/separately entitled for deduction of the maximum interest payable of Rs.1.5 lakh?
a) No. The net taxable income from the property must be calculated first and then apportioned between the co-owners. In this process of calculation maximum interest payable of Rs.1.5 lakh can be considered only once.

H) My spouse and I jointly own a house for construction of which both of us have invested equally out of independent sources. Can the rental income received be split between us and taxed in the individual hands?
a) Yes.

I) I have 5 separate let out properties. Should I calculate the house property income separately for each individual property or by clubbing all the rental receipts in one calculation?
a) The calculation will have to be made separately for the various properties.


  1. we can always give food aid to the african countries if we just save some pennies and donate it to them, jual apartemen jakarta selatan

  2. Its a great pleasure reading your post.Its full of information I am looking for and I love to post a comment that "The content of your post is awesome" Great work. Sobha windsor reviews

  3. Even on the off chance that you live in a Hot Market where private real estate sells in 2-3 days there is an old way to deal with real estate that is becoming quicker by the day.....Residential Real Estate Investors.
    Haitch Conveyancing

  4. A good blog always comes-up with new and exciting information and while reading I have feel that this blog is really have all those quality that qualify a blog to be a one. hausverwalter duisburg

  5. It was a very good post indeed. I thoroughly enjoyed reading it in my lunch time. Will surely come and visit this blog more often. Thanks for sharing. Short term property loans

  6. Property Digger is a search engine for property listings throughout the Arab Emirates. apartments in dubai silicon oasis

  7. I wanted to thank you for this great read!! I definitely enjoying every little bit of it I have you bookmarked to check out new stuff you post. real estate photography

  8. I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often. property gibraltar

  9. There are lots of dissertation websites from the net dwell acquire unsurprisingly regarded from the internet websites. gibraltar property for sale

  10. A significant part of the engaging finding out about an individual comes from that cusp and that house just as that individual's very own projection, reaction to its current circumstance and adapting abilities. king size silk sheets

  11. When you use a genuine service, you will be able to provide instructions, share materials and choose the formatting style. muabannhadat

  12. While property can be a rewarding and effective venture, it's anything but without its dangers. It is turning out to be progressively famous nowadays, particularly after the monetary downturn and securities exchange contributing as yet being generally investment workshop

  13. Really I enjoy your site with effective and useful information. It is included very nice post with a lot of our resources.thanks for share. i enjoy this post. Batdongsan


Copyright © 2015 accounting tally taxation tutorials All Right Reserved
Subscribe by Email Get Free Updates
Don't Forget To Join US Our Community