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Vacant house plots - any notional income tax?

Harsha (Software professional) (214 Points)

18 August 2015

Dear Experts,

I am just a share-holder of ancenstral house which is self-occupied. So I assume that I don't need to pay any income tax or show in ITR

But I hold vacant sites (not built houses) in my name. And they are just lying idle (not rented). Please confirm that they are out of the perview of any of house property and notional income.

Regards,

Harsha Vardhana R

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4 Replies

Shruthi (Article Assistent) (336 Points)
Replied 18 August 2015

Hi Harsha,

There is no need for you to file ITR, since there is no income from that vacant land.

However if u get any income from that vacant land, it will be chargable under head IFOS.

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CMA Poornima Madhava (CMA) (13097 Points)
Replied 18 August 2015

Vacant land is not covered for taxability under income from house property. Also no tax is liable in case of one self occupied property.

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Harsha (Software professional) (214 Points)
Replied 18 August 2015

Thank you for quick clarifications. I don't derive any income from the vacant plots

S. Shiroor (Others) (1207 Points)
Replied 18 August 2015

Meaning of House Property:-
House property consists of any building or land appurtenant thereto of which the assessee is the owner. The appurtenant lands may be in the form of a courtyard or compound forming part of the building. But such land is to be distinguished from an open plot of land, which is not charged under this head but under the head „Income from Other sources‟ or „Business Income‟, as the case may be. Besides, „house property‟ includes flats, shops, office space, factory sheds, agricultural land and farm houses.
Further, house property includes all type of house properties, i.e., residential houses, godowns, cinema building, workshop building, hotel building, etc.

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