Posted by: Labdhi Mehta on Apr 17, 2017, 05.10 PM IST
1. Rent and other income from any flat, building or land attached to it is generally taxed under the head income from house property. Open plot of land is not considered under this head.
2. The assessee must be the owner of such property and it should not be used by him for the purpose of any business or profession carried on by him.
3. Income chargeable is computed after standard deductions—30% of the net annual value and the amount of interest payable if borrowed capital is used to acquire, construct, repair, renew or rebuild.
4. Income is taxable on the basis of annual value—the amount for which the property might be reasonably be expected to be let out from year-to-year. The tax is charged on actual rent if it is higher than the standard amount.
5. One self-occupied property, which is used for own residential purposes throughout the year and no other benefits are derived by the owner from it, does not attract any tax.