Income from house property not only mean by the rental income from house property but the inherent capacity of the property to earn income, technically known as annual value of the house property.
According to Sec.22, Income from house property means,
“The Assessee is chargeable to tax on the annual value of the property, consisting of any building or lands appurtenant thereto, of which he is the owner, and which is not used by him for his own business or profession”
While calculating income from hose property, the following points should be taken into consideration, ie
1.The property should consist of any building or land appurtenant.
2.Legal ownership of the property must be vested with the Assessee.
3.the concept of annual value of house property
4.The property should not be used by the owner for his own business or profession.
5.letting out of building along with furniture(income from furniture treated as income from other source not from hose property)
ANNUAL VALUE
Annual value is the inherent capacity of the property to earn income; otherwise it has been defined as the amount for which the property might reasonably be expected to let from year to year and is the base for calculating income from house property.
EXEMPTED HOUSE PROPERTY INCOME
Fully exempted:-
1 .Income from farm house connected with agriculture
2. Annual value of one palace of ex-Indian ruler
3. Inocme from property used for Assessee’s own business
4. Income from house meant for self residence
5. Income from property owned by local authority, trade union, charitable trust, hospital etc.
Partially exempted:-
Income of a co-operative society from letting out of godown of commodities meant for sale
According to Sec.22, Income from house property means,
“The Assessee is chargeable to tax on the annual value of the property, consisting of any building or lands appurtenant thereto, of which he is the owner, and which is not used by him for his own business or profession”
While calculating income from hose property, the following points should be taken into consideration, ie
1.The property should consist of any building or land appurtenant.
2.Legal ownership of the property must be vested with the Assessee.
3.the concept of annual value of house property
4.The property should not be used by the owner for his own business or profession.
5.letting out of building along with furniture(income from furniture treated as income from other source not from hose property)
ANNUAL VALUE
Annual value is the inherent capacity of the property to earn income; otherwise it has been defined as the amount for which the property might reasonably be expected to let from year to year and is the base for calculating income from house property.
EXEMPTED HOUSE PROPERTY INCOME
Fully exempted:-
1 .Income from farm house connected with agriculture
2. Annual value of one palace of ex-Indian ruler
3. Inocme from property used for Assessee’s own business
4. Income from house meant for self residence
5. Income from property owned by local authority, trade union, charitable trust, hospital etc.
Partially exempted:-
Income of a co-operative society from letting out of godown of commodities meant for sale
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