Skip to content

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

Under the Income-tax Act, 2025, how is the annual value of a property held as stock-in-trade and not let at any time during the tax year treated, as per the section as amended by the Act of 2026?

The annual value of an unlet stock-in-trade property is nil up to two years from the end of the financial year in which the completion certificate is obtained from the competent authority. If it is let at any time in the year, this treatment does not apply.

  1. AIt is nil up to two years from the end of the financial year in which the completion certificate is obtainedCorrect
  2. BIt is nil for five years from the date of purchase
  3. CIt is always taxed at the reasonably expected rent
  4. DIt is nil only for the year in which the completion certificate is obtained

Explanation

Section 21(5) provides that the annual value of a stock-in-trade property that is not let is nil up to two years from the end of the financial year in which the completion certificate is obtained from the competent authority. After that period, the general rules for annual value apply. A five-year period and a single-year period are not stated in the section.

Did you get it right without looking?

One question tells you little. A timed set on Income under the Head House Property shows your real accuracy, how long you take and where you lose marks.

Practise Income under the Head House PropertyFree diagnostic mock

More Income under the Head House Property questions