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 recovered from tenant treated as income from other sources, not as income from house property. Interest recovered from a defaulting tenant is not part of the property's annual value and therefore does not qualify as income from house property; it should be characterised as income from other sources.