2.2. FOLLOWING INCOMES ARE EXCLUDED FROM THE CHARGE OF TAX UNDER “INCOME FROM HOUSE PROPERTY“ :
Under Section 10 of the Income Tax Act. 1961 following incomes from House Property are exempted from tax. These incomes are not to be included in the total income of assessee. Hence, no tax is payable on such incomes. These incomes are :
1. Annual Value of the House Property used for business purpose - This is subjected to tax under Income from Other Sources.
2. Income from Rent received from vacant land - This will be treated under “ Income from Other Sources ”.
3. Income from house property situated nearby agricultural land and used as a Store House, Dwelling House etc., by the cultivators- This will be treated under “ Agricultural Income”.
4. House Property held for charitable purposes e.g. Rent from shops owned by a Temple is also exempted.
5. Property held by restricted trade union is not to be included in its Gross Total Income.
6. Income from Farm House.
7. Property income of a local authority.
8. Property income of an approved Scientific Research Association.
9. Property income from Educational Institution and Hospital
10. House Property held for Charitable purposes.
11. Property income of a political party
12. One Self-occupied Property.
However, the following incomes are Taxable under “Income From House Property”:
1. Any arrears of rent, not taxed u/s 23 received in a subsequent year.
2. Incomes earned by letting-out any farm house or agricultural land for any purpose other than agriculture.
3. Letting of Shops, Complexes, Commercial Buildings.
4. When the property is let-out.