Taxation of Income from House Property – First guide to basics
Income from House Property: Rental income earned from immovable property is passive income to a person, as generally, he does not put any effort to earn it. There is a separate chapter namely “Income from house property” under the Indian Income Tax Act, 1961 which deals with the taxation of such income. The peculiarity of this chapter is that it intends to tax notional income. You may end up paying tax on the income which you have never earned. Let us try to decipher the nitty gritties in this article. Typical computation of income from house property is depicted in the table below: