Chargeability - (New) Section 20 / (Old) Section 22

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....p; • Property Characteristics: Only buildings or appurtenant land qualify; income from vacant land is excluded. • Ownership: Income is taxable only in the hands of the owner or deemed owner. • Usage Exceptions: Properties used for the owner's business/profession or let inseparably with plant/machinery are taxed under other heads. Exemptions and Reliefs • Rental Income specified under Section 2(5) : • Any rent or revenue derived from a land which is situated in India and is used for agricultural purposes;. • Any income derived from farm building shall be considered as agriculture income, and consequently exempt from tax. • any income derive....

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....property consisting of • any buildings or • lands appurtenant thereto • of which the assessee is the owner • is chargeable to income tax under the head "Income from house property". CONDITIONS FOR CHARGEABILITY • Property should consist of any building or land appurtenant thereto • Income from letting out of vacant land is taxable under the head "Income from other sources". Assessee must be the owner of the property • Owner is the person who is entitled to receive income from house property in his own right. The requirement of the sale deed is not warranted. • Ownership includes deemed ownership. • If the title of the ....

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....¢ If the owner of the property is an Individual/HUF who is a partner in a firm and such property is used by that firm for carrying on Business/Profession, then property is considered to be used for Business purpose. • If the property is owned by HUF and any member of HUF is the partner in his individual capacity then income shall be taxable under this head. • If the property is given on rent for purpose like marriage, organising fair etc. then it is not taxable under this head but under "Income from Business/Profession"-section 28. • If property is located outside India, then also tax is computed under this head. Exemptions and Reliefs • Income from farm building ( Section 2(1A)(c....