Income From House Property

Income From House Property

Income from House Property Definition and Types of House Property Income from House Property is one of the heads of income under the Indian Income Tax Act, 1961. It refers to the income earned by an individual or entity from owning property consisting of buildings or land appurtenant thereto, which is not used for business or profession. Definition (as per Section 22 of the Income Tax Act): “The annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner, other than such portions as he may occupy for the purposes of any business or profession carried on by him, the profits of which are chargeable to income tax.” So, income from house property is taxed on the basis of ownership, not on actual rent received, and it applies even if the property is not let out. Types of House Property for Tax Purposes: Self-Occupied Property (SOP): Property occupied by the owner for their own residential purpose. Up to two properties can be treated as self-occupied from FY 2019-20. Annual Value = NIL Interest on home loan (if any) is deductible up to ₹2,00,000 per annum under Section 24(b). Let-Out Property (LOP): Property

Updated July 15, 2026