Abstract Income from house property is defined by Section

Abstract  :: Income  tax  is  generally  a  composite  tax  on  the  aggregate  of  incomes  from  various  sources. However,  income  is  first  computed  under  different  heads  of  income  and  then  aggregate  from  the aggregated  amount,  certain  deductions  are  made  is  arrive  at  taxable  income.  Various  heads  of income  are  generally  mutually  exclusive.  If  any  income  falls  under  one  head,  it  can  not  be considered  under  any  other  head.  The  method  of  computing  income  and  the  permissible  deductions differ  with  each  head  of  income.  The  scope  of  income  charged  under  the  Income  from  house property  is  defined  by  Section  22  and  the  computation  of  income  under  this  head  is  explained  by Section  23  to  27.  The  paper  highlights  the  rules  for  calculating  or  computing  income  from  house property  as  per  Income  tax  Act,  1961. Keywords: Annual  Value,  Assesses,  Deduction,  Income,  Income  tax,  Section Introduction  :: As  per  section  14,  all  income  for  purposes  of  change  of  Income-Tax  and  computation  of  total  income are  classified  under  the  following  heads  of  income. Salaries  Sec.  15  to  17 Income  from  house  property  Sec.  22  to  27 Profits  and  gains  of  business  and  profession  Sec.  28  to  44D Capital  gains  Sec.  45  to  55 Income  from  other  sources  Sec.  56  to  59 Although  there  is  only  one  tax  on  the  income  calculated  under  various  heads,  but  there  are  different rules  of  computation  of  income  under  each  head. Generally  only  real  income  in  taxable  under  the  Income-tax  Act.  Where  the  law  provides  for  adopting notional  figure  as  the  basis  of  computation,  it  is  also  possible  that  notional  income  also  gets  taxed  in view  of  such  specific  provision.  On  account  of  this  provision  there  are  certain  situations  under  this head  of  income  from  house  property  when  assesses  may  be  taxed  on  real  income  as  well  as  on  a notional  income. The  provisional  relating  is  this  head  of  income  can  be  divided  into  three  segments Sections  22  to  27 Chargeability  Sec.22 Deemed  Owner  Sec.  27 Computation  of  Income Sec.  23  to  25 1 of 5 Special  Provisional Sec  25  AA  25B and  26 2


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