ò INCOME FROM HOUSE PROPERTY
Tax is on the annual value of the house property after allowing certain deductions. House Property consists of any building, flat, shop etc., and the land attached to the building.
Property Incomes Exempt From Tax
Some incomes from house property are exempt from tax. They are neither taxable nor included in the total income of the assessee for the rate purposes. These are:
å Income from a farm house [section 2(1A) (c) and section 10(1)].
å Annual value of one palace in the occupation of an ex-ruler [section
å Property income of a local authority [section 10(20)].
å Property income of an approved scientific research association [section
å Property income of an educational institution and hospital [section
å Property income of a registered trade union [section 10(24)].
å Income from property held for charitable purposes [section 11].
å Property income of a political party [section 13A].
å Income from property used for own business or profession [section 22].
å Annual value of one self occupied property [section 23(2)].Computation of income from Self Occupied property