what is the types of house property in income tax

There are three types of house property in income tax: self-occupied property, let-out property, and deemed-to-be let-out property. As per the Income Tax Act of 1961, a house property includes buildings, flats, office space, shops, factory sheds, commercial buildings, or agricultural lands. Any income that gets generated from the house property is taxable and comes under the liability of a taxpayer, the owner, or the immediate owner of the property. 

What are the Types of House Property in ITR?

The types of house properties in ITR are:

• Self-occupied property.

• Let out property and

• Deemed to be let out property.

Do remember that the annual value of self-occupied property is NIL. They are supposed to be non-revenue-generating, and thus, no tax is applicable on such property. 

As for the value calculation, the property value is calculated as per the market value or per the municipal value + income receivable from the property. So the Gross Annual Value will be calculated as the value of the property – vacancy loss.

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In income tax parlance in India, types of house property in income tax can be broadly categorized into three types:

This is a property in which the taxpayer (or the taxpayer's family) resides for residential purposes.

The Income Tax Act considers one house property as self-occupied, and the annual value of such a property is deemed to be nil. However, deductions for interest on borrowed capital are still available, subject to certain limits.

The second one in the types of house property in income tax return is Let out Property. If the taxpayer owns a property that is rented out to others, it is considered a let-out property. 

The annual value of such a property is determined based on the actual rent received or the fair rental value, whichever is higher. Deductions for municipal taxes, standard deduction (30% of annual value), and interest on borrowed capital are allowed.

If the taxpayer owns more than one house property and none of them is used for residential purposes, the additional properties are deemed to be let-out, even if they are not actually rented out.

The annual value for each of these properties is calculated as if they were rented out, and deductions are allowed for municipal taxes, standard deduction, and interest on borrowed capital.

It's essential to note that the concept of deemed to be let-out property helps the income tax system account for situations where a taxpayer may own multiple properties and could potentially derive rental income from them.

Taxpayers need to report income or loss from house property in their income tax returns, taking into account the specific rules and provisions applicable to each type of property.

Additionally, deductions and exemptions, such as those for home loan interest and principal repayment, may vary based on the purpose of the property (self-occupied or let-out) and other factors.

These are the type of house property in income tax return. I hope this will help you out.