Income from House Property and Taxes

2021 Budget Review: It is proposed to exempt seniors from completing income tax returns if pension and interest income are their only annual source of income. Section 194P was recently introduced to force banks to withhold tax on adults over the age of 75 who receive pensions and interest from the bank. Property tax: owning a house one day - everyone dreams of this, saves this and hopes to earn this one day. However, owning a home does not mean that you have no responsibility. Paying rent a year is one of them. If you want to learn how to save on tax on mortgages, this guide is for you. It also discusses how you can report home ownership on your income tax return.

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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.


 

CEO Krishna Gopal

Krishna Gopal Varshney is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Myitronline.com. Myitronline is amongst the top emerging startups of Asia and authorized ERI by the Income Tax Department. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. ”

Krishna Gopal Varshney
Co-founder & CEO