Home > Income Tax > Help Center > A Guide on House Property Last Updated: Mar 20th 2023
Rental income from houses is rising. Rental Income must be reported in IT Filing, and this document explains taxability, deductions, exceptions, and savings.
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Rental income from a property (Building / Flat / dwelling) of which the taxpayer is owner/deemed owner is charged to tax under the "Income from house property". If you are a taxpayer and had a house/flat that is either rented out or kept vacant you need to know about income from house property for income tax calculation purposes.
The Annual value of any property consisting of buildings or land appurtenant thereto for which the taxpayer is the owner is chargeable under the head "Income from House property".
Annual value of the following properties cannot be considered under “Income from House Property”. Following can be considered under “Income from Business/Profession”.
For Residents : Income from house property situated outside India is taxable under the head Income from House Property for residents whether such income is brought to India or not
For RNOR or NRI : Income from house property situated outside India is taxable in India only if such income is received in India. Otherwise it is not taxable in India
Income chargeable to tax under the head "Income from house property" in case of a self-occupied property is computed in following manner
Particulars | Amount |
---|---|
Gross annual value | Nil |
Less :- Municipal taxes paid during the year | Nil |
Net Annual Value (NAV) | Nil |
Less :- Deduction under section 24 | - |
Deduction under section 24(a) @ 30% of NAV | - |
Deduction under section 24(b) on account of interest on borrowed capital | XXXX |
Income from house property | XXXX |
Income chargeable to tax under the head “Income from house property” in the case of a let-out property is computed in the following manner
Particulars | Amount |
---|---|
Gross annual value | XXXX |
Less :- Municipal taxes paid during the year | XXXX |
Net Annual Value (NAV) | XXXX |
Less :- Deduction under section 24 | - |
Deduction under section 24(a) @ 30% of NAV | XXXX |
Deduction under section 24(b) on account of interest on borrowed capital | XXXX |
Income from house property | XXXX |
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