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CS Executive · Tax Laws and Practice · Income under the Head House Property

Under the Income-tax Act, 2025 (applicable from the June 2027 session), the annual value of which of the following is chargeable under the head "Income from house property"?

Section 20(1) of the Income-tax Act, 2025 charges to tax under house property the annual value of buildings or lands appurtenant thereto that are owned by the assessee. Ownership is the basis of charge, not letting or residential use.

  1. ABuildings or lands appurtenant thereto owned by the assesseeCorrect
  2. BAny building used by the assessee, whether or not he owns it
  3. COnly buildings let out to tenants during the tax year
  4. DOnly residential buildings, but not lands appurtenant to them

Explanation

Section 20(1) charges the annual value of property consisting of buildings or lands appurtenant thereto, owned by the assessee. Ownership is the test, not use or letting. Limiting the charge to let-out or residential buildings adds conditions the section does not contain.

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