OWN A HOUSE PROPERTY- KNOW YOUR TAX IMPLICATION

OWN A HOUSE PROPERTY- KNOW YOUR TAX IMPLICATION

HE YOU ARE THE OWNER OF HOUSE PROPERTY, THEN ITS ANNUAL VALUE IS TAXABLE UNDER THE HEAD HOUSE PROPERTY.

ACCORDING TO SECTION 22 OF INCOME TAX ACT, 1961, THE ANNUAL VALUE OF BUILDING OR HOUSE PROPERTY AND THE LAND APPURTENANT (i.e. ACCOMPANYING) THERETO IS TAXABLE UNDER THIS HEAD

EXPLANATION OF ABOVE RULE

1. EVEN IF LETTING OUT IS THE BUSINESS OF ASSESSEE STILL ITS RENTAL INCOME IS TAXABLE UNDER THIS HEAD.
2. IF BUILDING IS LET OUT TO CARRY ON THE BUSINESS MORE EFFICIENTLY, THEN IT SHALL BE TAXABLE UNDER HEAD PROFIT & GAINS OF BUSINESS OR PROFESSION
3. IN CASE OF COMPOSITE RENT, IF IT IN INSEPARABLE.
4. IF BUILDING IS OCCUPIED BY ASSESSEE FOR HIS OWN PROFESSION OR BUSINESS THEN NOTHING SHALL BE TAXABLE.
5. INCOME UNDER THIS HEAD IS TAXABLE ONLY IF ASSESSEE IS THE OWNER OF THE BUILDING

FOR THE PURPOSE OF OWNER OF THE HOUSE PROPERTY FOLLOWING SHALL BE CONSIDERED (REFER SECTION 27 OF INCOME TAX ACT, 1961)

1. IF IN CASE OF TRANSFER TO SPOUSE OR MINOR CHILD (NOT BEING A MINOR MARRIED DAUGHTER), WITHOUT ADEQUATE CONSIDERATION, THEN TRANSFEROR SHALL BE DEEMED OWNER
2. HOLDER OF IMPARTIAL ESTATE IS DEEMED OWNER
3. IN CASE OF ALLOTMENT OR LEASE UNDER A HOUSE BUILDING SCHEME OF SOCIETY , THEN THE PERSON TO WHOM BUILDING HAS BEEN ALLOTTED SHALL BE DEEMED OWNER
4. THE PERSON WHO ACQUIRED HOUSE WITHOUT REGISTRATION IN PART PERFORMANCE OF CONTRACT UNDER SECTION 53A
5. THE LESSEE OF BUILDING IN CASE BUILDING IS LEASED OUT FOR NOT LESS THAN 12 YEARS IS DEEMED AS OWNER.

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