Rent from vacant land

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182 Points Joined January 2018
Rent from vacant land will come under house property or from other sources
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On 14 October 2024 at 20:32 Report
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Master in Accounts & high court Advocate
9586 Points Joined December 2011

Rent earned from vacant land is considered as "Income from Other Sources" and not as "Income from House Property" under the Income Tax Act. Here's why: - "Income from House Property" applies to income earned from buildings or structures, like houses, flats, or commercial properties. - Vacant land, on the other hand, is not considered a "house property" as it does not have any buildings or structures. So, the rent earned from leasing out vacant land is taxed under "Income from Other Sources" (Section 56 of the Income Tax Act). However, if you construct a building or structure on the vacant land and rent it out, the income will then be taxed as "Income from House Property".

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On 14 October 2024 at 21:32
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Master in Accounts & high court Advocate
9586 Points Joined December 2011

Rent earned from vacant land is considered as "Income from Other Sources" and not as "Income from House Property" under the Income Tax Act. Here's why: - "Income from House Property" applies to income earned from buildings or structures, like houses, flats, or commercial properties. - Vacant land, on the other hand, is not considered a "house property" as it does not have any buildings or structures. So, the rent earned from leasing out vacant land is taxed under "Income from Other Sources" (Section 56 of the Income Tax Act). However, if you construct a building or structure on the vacant land and rent it out, the income will then be taxed as "Income from House Property".

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On 14 October 2024 at 21:32


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