Income Tax on Properties in India
Income from properties in India is subject to Income Tax under the head “Income from House Property” as per the Income Tax Act, 1961. The tax is levied on rental income earned from property or deemed income if the property is not let out.
Key Points:
- Annual Value: The income is calculated based on the annual value of the property.
- Deductions: Deductions for repairs, property taxes, and interest on home loans (under section 24(b)) can be claimed.
- Self-Occupied Property: No tax on self-occupied property, but a notional rent may apply to vacant properties.
- Income from rental properties is taxed based on income slabs, with exemptions available for certain expenses and conditions.