1. Basics of House Property Tax
furniture can be your home, office, shop, building or a place connected to a building such as a car park. The Income Tax Act does not distinguish between commercial and residential property. All types of property are taxed under the heading ‘income from property’ in return for income tax. The owner for the purpose of income tax is its legal owner, a person who can exercise the rights of the owner himself and not on behalf of another person. If the property is used for a business or sector purpose or to make a living - it is taxed under 'business and operational income'. The cost of repair and maintenance is allowed as business expenses.
Frequently Asked Questions
Q- What is your ‘income from house property’ when you/your family live(s) in it?
If you use your property as a residence for a year and it can be released or used for any other purpose, it is considered a one-person residence. The total annual value of this building is zero. There is no income for your furniture. Note: Since the total annual value of the house in which you live is zero, claiming interest on a mortgage loan will result in the loss of the property. This loss can be remedied compared to your income from other heads. Click here to read how Suresh lost his home property due to his mortgage.
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