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Exempted Incomes From House Property [Section-10]

 

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. Agricultural House Property [Section 2(1)(c)]. Income from such house property which is ituated on or in the immediate vicinity of agricultural land which is used for agricultural purposes by cultivator is exempted from tax.

2. House property held for charitable purposes [Section 11]. Any income from a house property held for charitable or religious purposes e.g., rent from shops owned by a temple is also exempted.

3. Self-occupied but vacant house [Section 23(3)]. in case an assessee keeps one of his own houses reserved for self-occupation but is living in a rented house elsewhere due to his employment or profession the income from such house is taken to be nil.

4. House used for own business or profession. There is no income chargeable to tax under this head from such house property.

5. Property held by registered trade union [Section 10(24)]. Income from a house property owned by a resIstered trade union is not to be included in its G.T.I.

6. Income from house property held by following shall be exempted

(i) House property held by a local authority.

(ii) House property held by a scientific research institution.

(iii) House property held at a political party.

(iv) +louse property held by a university and any other educational institution working for spreading education and not to earn profit.

(v) House property held by a hospital or medical institution working for the spreading of medical services to people and are not meant for earning profit.

7. One house property (a palace) owned by a former ruler of Indian states. Ex-rulers of Indian states may be owning many palaces but only one palace of their choice shall be treated as a self occupied house and shall be exempted.

8. One self occupied house. In case assessee owns one residential house, the net annual value of the same shall be taken as nil but in case he owns more than one house, then only one of his choice but normally of higher value shall be treated as a self occupied one and other/others are treated as deemed to Je let out.
 
More Topics... @ 'House Property'
Definition & Meaning of the Head ‘ Income from House Property’
 Deemed Owner of House Property
Exempted Incomes From House Property [Section-10]
 Exempted Incomes from Cooperative Society
Annual Value as Calculation of Income from House Property
Determination Of Annual Value Of    House Property
Selection of Annual Rental Value (Gross Annual Value) for Let Out House Property
Deductibility of Taxes Levied by Local Authority (i.e. Municipal taxes) while computing Annual Value of House Property Income [Proviso to Section 23(1)]
Selection of Annual Rental Value for Self-Occupied House Property
DEDUCTIONS U/S - 24 Out of Net Annual Value (NAV) of House Property Income
Treatment of Pre-acquisition/Pre-construction period Interest
Treatment of Unrealised Rent of House Property Income
 
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