Section 22 of Income Tax Act states of the taxation of the annual value of a property consisting of any building or land appurtenances thereto. The term buildings here may include- offices, godowns, storehouses, warehouses, and more. The property must not be used for business or other professional purposes by the owner. I hope the basic what is section 22 of income tax act is clear to you now.
What are some of the aspects of Section 22?Some of the aspects of Section 22 that you need to keep in mind are-
The tax that is imposed under Section 22 is a tax on the annual value of house property.
The income that arises out of the building or from a part of the building is covered under Section 22.
Any income coming from the vacant land will not be covered under this section even though if it is received as rent, ground rent, or lease rent
It will not make any difference if the property is owned by a limited company, a Hindu Undivided Family, a firm or individual
When a business or profession is carried on by a firm owned by a partner, no income from that property is added to the income of the partner until and unless the partner pays any rent to the other one.
If the assessee is not the owner of the property but is a lessee and sublets the property, then he/she will be taxed under the heading “Income from other sources.”
There are more clauses as well. I would hence suggest you seek an expert’s advice in case of any doubt or query.
These are some of the details I know about Section 22 of income tax act.
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Authors Of The Question
What is Section 22 of Income Tax Act?
Ashwati
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2023-05-18T10:21:59+00:00 2023-05-23T17:34:28+00:00Comment
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