While computing income chargeable to tax under the head “Income from house property” in case of a let-out property, the taxpayer can claim deduction under section 24(b) on account of interest on loan taken for the purpose of purchase, construction, repair, renewal or reconstruction of the property.
Which will be taxable as income from house property?
Income from House Property Becomes Taxable If the Following Conditions Are Met: The house property comprises of the building and/or any land attached to it. The taxpayer is the owner of the property. The taxpayer should not use the house property to run any business or profession.
Which income is exempted under the head income from house property?
House property income of a political party is free from tax under Section 13A. Revenue earned from a property belonging to an approved scientific research association is exempted from tax under Section 10(21). Property income of educational organizations, medical institutions are free from tax as per Section 10(23C).
Which of the following is not taxable as income under the head salaries?
Exceptions – Remuneration, bonus or commission received by a partner from the firm is not taxable under the head Salaries rather it would be taxable under the head business or profession.
How much rent income is tax free?
The act allows exemptions up to ₹ 2 Lakh for self-occupied rented property, and for home construction loans, the exemption on interest can be earned in five instalments after the construction is completed.
Is property sale amount taxable?
If a property is sold within three years of buying it, any profit from the transaction is treated as a short-term capital gain. … If you sell after three years, the profit is treated as long-term capital gains and taxed at 20% after indexation.
On which assets depreciation is allowed?
As per section 32 of the Income Tax Act, 1961, depreciation is allowed on tangible assets and intangible assets owned, wholly or partly, by the assesse and used for the purposes of business or profession.
What is mean by income from house property how it is calculated?
A person’s gross total income chargeable to tax various heads and one of these heads of income is ‘Income from House Property’. … A person’s gross total income chargeable to tax is a sum of income under various heads such as ‘income from salary’, ‘income from other sources’ etc.
How the value of rent free house is calculated under the head salaries?
In case of rent-free accommodation provided to an employee, wherein the employer has taken the property on lease or rent, the value of the perquisite would be the actual amount of lease or rental paid or 15% of the salary, whichever is lower.
What are the condition to be fulfilled for charging of income under the head capital gain?
Section 45 of Income Tax Act, 1961 provides that any profits or gains arising from the transfer of a capital asset effected in the previous year will be chargeable to income-tax under the head ‘Capital Gains’. Such capital gains will be deemed to be the income of the previous year in which the transfer took place.