Income from house property

Essential conditions for taxing income under this head

Income from house property is taxable in the hands of its legal owner in whose name the property stands.

"Owner‟ for this purpose means a person who can exercise the rights of the owner not on behalf of the owner but in his own right. A person entitled to receive income from a property in his own right is to be treated as its owner, even if no registered document is executed in his name.

The following three conditions must be satisfied before the income of the property can be taxed under the head “Income from House Property”: 

1. The property must consist of buildings and lands appurtenant thereto;

2. The assessee must be the owner of such house property; 

3. The property may be used for any purpose, but it should not be used by the owner for the purpose of any business or profession carried on by him, the profit of which is chargeable to tax. If the property is used for own business or profession, it shall not be chargeable to tax.

Ownership includes both free-hold and lease-hold rights and also includes deemed ownership.

Extract from :https://www.incometaxindia.gov.in/tutorials/income-from-house-property-practical.pdf

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