What is income from House Property?

Deductions from House Property Income


“Rent” of every type of building, whether the same has been rented for residential or commercial purposes, is offered to tax as ‘Income from House Property’.

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Properties are divided into two categories:

a.             Self- Occupied

Case 1: When you own one house

Suppose you own only one house and you are residing in the same, in such a case, you are not earning any rental income from such house and therefore, taxable value for this house should be Nil.


Case 2: When you own more than one house

If you own more than one house, in such a situation, you can only treat one house as occupied for own purposes and the other house property will be assumed to be let-out and income tax at a notional rental income would be applicable. Notional rental income is usually the expected from renting of that property.


b.             Let- Out

A let- out house property is one that is occupied by tenants, supported by a rent agreement. In such situation, the actual rent received/ receivable from the tenants under the rent agreement on an annual basis is brought to tax and is termed the annual value of said property.

Read: Available deductions from House Property income. 


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