Interpreting Sections 22, 23, and 24: Taxation of Notional Rental Income from House Property and Vacancy Allowance

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....olves around the interpretation and application of Sections 22, 23, and 24 of the Income Tax Act, 1961. These sections form the crux of the legal framework for taxing income from property ownership. The appellant's contention and the subsequent tribunal's decision in this case provide insightful perspectives into how these provisions are applied in real-life scenarios. Legal Framework: Se....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ctions from the annual value calculated under Section 23. These deductions include a standard deduction of 30% of the annual value and interest on borrowed capital. Case Analysis * Identification of Incriminating Material: The tribunal identified the presence of incriminating material in the form of a balance sheet that showed ownership of certain properties. This was considered as a basis fo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Section 24: The tribunal upheld the appellant's right to a standard deduction of 30% under Section 24(a) of the Act. This deduction is unqualified and was thus allowed on the estimated annual value​​. * Rejection of Vacancy Allowance: The tribunal did not allow vacancy allowance as the properties were not let out during the entire year, aligning with the mandate of the Punjab ....