INTREST RECOVERD FROM TENANT

[NILESH PITALE]

Dear Expert

Our Client has Recovered Interest Amount from defaulter Tenant.

Our Quairy : Interest Recovered is Consider as Income from house property or Other Sources of Income

Please Guide

[Padmanathan KV]

In my opinion, it should be income from other sources.

What is taxable under income from house property u/s 22 is only the annual value of the property.

AI Summary

Interest from Defaulting Tenant Classified as Income from Other Sources, Not House Property, per Section 22 for Tax Purposes. A client has recovered interest from a defaulting tenant and seeks clarification on whether this should be classified as income from house property or other sources for tax purposes. An expert responded, advising that the interest recovered should be considered as income from other sources. The rationale provided is that income from house property, as per section 22, pertains only to the annual value of the property.