Income from house property

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Income from house property:

Income from House Propety in India: The income arising out of a house property either in the the from of a rental income or on its transfer is reffered to as 'income from house property'. In essence, any property such as house, building, office, warehouse is treated as 'house property' under the Income Tax Act.


How income from house property is determined?

The property owner cannot charge a rent higher than the standard rent fixed under Rent Control Act. Net Annual Value (NAV) is the value calculated as Gross Annual Value minus Municipal taxes paid. These are deducted to ascertain the Actual taxable income.


What is taxable income from house property?

Homeowners can claim a deduction of up to Rs 2 lakh on their home loan interest, if the owner or his family resides in the house property. The same treatment applies when the house is vacant. If you have rented out the property, the entire home loan interest is allowed as a deduction.


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