Income From House Property
Income from house property is that if individual person have his or her own house property and use it to earn income through rent. This rent is mention as ‘annual value’ and becomes taxable.
Conditions when house property becomes taxable are
- He or She owns the property.
- House property should not be used for business or profession
How to Save Tax:-
- Become co-owner: If you take home loan jointly, than you can claim for tax exemption towards payment of principal and interest.
- Getting the second house: If individual already have one property in his or her name than its better to register second property in his or her spouse name or relative so they will avoid taxation.
While computing income from house property things to remember are:-
- House tax is calculated on the property’s NAV.
- If tax payer house is vacant for some months than computation of income from house property should be only for rent received, not for the entire year.
Download the updated Income from house property PDF file to know more in detail