If you own a residential property in India and you have put it out on rent or you are planning to transfer its rights to someone else in exchange for money, then you should be aware of income from house property. If you are new to this concept and wondering what is income from house property, how it is calculated then you are at the right place. I am going to tell you about its meaning and calculation here.
Income from house property meaningThe Income Tax Act identifies income from house property when the property, i.e., house, building, office, warehouse is let out on rent or is being transferred. The money earned in the transaction is income from house property.
There are 3 conditions under which income from house property is calculated:
The property should be a building, land or an apartment
The assessee should be the owner of the property
The house property should not be used for business or professional purposes
There are a few things which are considered before calculating the income from house property
Tax on the house is calculated on the property's NAV.
Income from house property will be computed only for the period of rent received and not the entire year if the owner’s house is vacant for a significant amount of time and is later let out.
If the owner of the home lives in another city due to employment and pays municipal taxes on time then the income from house property can be set off without deductions.
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Authors Of The Question
What is income from house property?
Ramya
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3 Year
2021-07-02T14:00:03+00:00 2023-08-03T15:41:46+00:00Comment
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