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What is Income from house property? Annual value how determined? Section 22 and 23 of Income Tax Act 1961

Income from house property and Annual value how determined are defined under section 22 and 23 of Income Tax Act 1961. Provisions under these sections are:

Section 22 of Income Tax Act "Income from house property"

22. The annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner, other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to income-tax, shall be chargeable to income-tax under the head "Income from house property".

Section 23 of Income Tax Act "Annual value how determined"
23. (1) For the purposes of section 22, the annual value of any property shall be deemed to be-

(a) the sum for which the property might reasonably be expected to let from year to year; or

(b) where the property or any part of the property is let and the actual rent received or receivable by the owner in respect thereof is in excess of the sum referred to in clause (a), the amount so received or receivable; or

 

(c) where the property or any part of the property is let and was vacant during the whole or any part of the previous year and owing to such vacancy the actual rent received or receivable by the owner in respect thereof is less than the sum referred to in clause (a), the amount so received or receivable :

Provided that the taxes levied by any local authority in respect of the property shall be deducted (irrespective of the previous year in which the liability to pay such taxes was incurred by the owner according to the method of accounting regularly employed by him) in determining the annual value of the property of that previous year in which such taxes are actually paid by him.

Explanation.-For the purposes of clause (b) or clause (c) of this sub-section, the amount of actual rent received or receivable by the owner shall not include, subject to such rules8 as may be made in this behalf, the amount of rent which the owner cannot realise.

(2) Where the property consists of a house or part of a house which-

(a) is in the occupation of the owner for the purposes of his own residence; or

(b) cannot actually be occupied by the owner by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building not belonging to him,

the annual value of such house or part of the house shall be taken to be nil.

(3) The provisions of sub-section (2) shall not apply if-

(a) the house or part of the house is actually let during the whole or any part of the previous year; or

(b) any other benefit therefrom is derived by the owner.

(4) Where the property referred to in sub-section (2) consists of more than one house-

(a) the provisions of that sub-section shall apply only in respect of one of such houses, which the assessee may, at his option, specify in this behalf;

(b) the annual value of the house or houses, other than the house in respect of which the assessee has exercised an option under clause (a), shall be determined under sub-section (1) as if such house or houses had been let.

 

   
 

Income Tax Act 1961

What is Income from house property? Annual value how determined? Section 22 and 23 of Income Tax Act 1961

What are the Deductions from income from house property? What are the Amounts not deductible from income from house property? Section 24 and 25 of Income Tax Act 1961

What is the Special provision for cases where unrealised rent allowed as deduction is realised subsequently? Is Unrealised rent received subsequently to be charged to income-tax? Section 25A and 25AA of Income Tax Act 1961

What is the Special provision for arrears of rent received? What is the treatment of Property owned by co-owners? Section 25B and 26 of Income Tax Act 1961

What is Owner of house property annual charge etc. ? Section 27 of Income Tax Act 1961

 

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