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Transcript of Tax - House Property
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PROJECT REPORT ON INCOME FROM HOUSE PROPERTY
TABLE OF CONTENTS
TABLE OF CASES............................................................................................................2
SYNOPSIS..........................................................................................................................3
INTRODUCTION..............................................................................................................4
CHAPTER 1 – CHARGEABILITY UNDER INCOME TAX ACT, 1961........................5
ESSENTIALS OF SECTION 22....................................................................................5
CHAPER 2 – DETERMINATION OF INCOME FROM HOUSE PROPERTY........... .13
GROSS ANNUAL ALUE OF THE HOUSE PROPERTY........................................13
DEDUCTIONS.............................................................................................................21
CHAPTER 3 – MISCELLANEOUS PROISION..........................................................3!
BIBLIOGRAPHY.............................................................................................................3"
BOO#S.........................................................................................................................3"
$EBLIN#S..................................................................................................................3"
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PROJECT REPORT ON INCOME FROM HOUSE PROPERTY
TABLE OF CASES
Re: Authority for Advance Rulings v. Jasbir Singh Sarkaria, %2!!"& 164 T'()'*
1!+ %AARN- D-/0&.................................................................................................."
Amolak Ram Khosla v. CI, %19+1& " 1TR 51 %SC&................................................14
CI v. Amrit !al Adlakha, %2!!"& II SOT 6"4 %A.& %SMC II&...............................24
CI v. Chandenlal "aganlal, %2!!2& 12! T'()'* 3+ G......................................1"
CI v. #ee$ak Seth, %2!!5& 1 SOT 35 %D-/&.............................................................19
CI v. #elhi Cloth and %eneral "ills !td., %1966& 591 TR 152 %PH&..................9
CI v. Justice Avadh &ihari Rohatgi, %19+1& 21 T'()'* 4!9 %D-/&.......................2!
CI v. K. Srinivasan, %19"2& +3 ITR 346351............................................................4
CI v. "aster Sukh'ant Singh, %2!!5& 196 CTR %PH& 122................................23
CI v. (ational (e's$rint and )a$er "ills, %19"+&114 ITR 3++ %MP&...................9
CI v. )iccadily *otels +) !td., %2!!5& 9" 1TD 564 %C07.&...................................24
CI v. )remnath "otors +). !td., %2!!"& 163 T'()'* 3+3 %R'&..........................24
#r. &albir Singh v. "C#, %19+5& 152 ITR 3++ %SC&................................................14
I- v. "akru$a Chemical +) !td., %2!!"& 12 SOT 6+ %M)&.............................23
)remsudha /$ort +). !td v. CI, %2!!"& 1" SOT 293 %M)&.............................16
Sheila Kaushish v. CI, %19+1& " ITR I %SC&............................................................14
She' Kissen &hatter v. CI, %19"3& +9 ITR 6.........................................................23
Sushma Rani &onsai v. CI, %2!!"& 165 T'()'* 145 %D-/& %M'8.&.........................."
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PROJECT REPORT ON INCOME FROM HOUSE PROPERTY
SYNOPSIS
Abstract
I* 0- 7:;* ; ';* ;< *:;)- /'*-7. S. 222" ;;=;* *7- 0- I*:;)- T'( A:, 1961 ; 7-'/ 0
0- *:;)- -?
2. $0' '- 0- )-0;7 ; :'/:/'- ');* ;< '( ; @- >'7 *7- 0- 0-'7
I*:;)- -?
Research "ethodology
A 7-:>=- '*7 7;:*'/ --':0 )-0;7;/;8? ' -7 ;-:.
C;*:-*-7 '- '*7 @;; ;< -*;*-7 '0; -- /;;-7 *; /';* ;< 0- >--* 7?. S-=-'/ -@- -- /;;-7 *; )'? '*7
-:;*7'? )'-'/ )-*;*-7 '@;=-, 0- >--* 7? 0' @--* :;)>/-7 '*7
>--*-7 ; 0- :;*:-*-7.
Cha$terisation Scheme
C0'>- 1 – C0'8-'@/? *7- 0- I*:;)- T'( A:, 1961
C0'>- 2 – D--)*';* ;< I*:;)- -?
C0'>- 3 – M:-//'*-; P;=;*
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PROJECT REPORT ON INCOME FROM HOUSE PROPERTY
INTRODUCTION
S. 4 ;< 0- I*:;)- T'( A:, 1961 >;=7- -)-
C; * CI v. K. Srinivasan,1 0' '/0;80 S. 4 0- :0'8*8 -:;*, ?- *:;)- '(
:'* @- :0'8-7 ;*/? 0-* 0- :-*'/ ':, 0:0 *;)'//? 0- F*'*:- A:, -*': 0'
*:;)- '( 0'// @- :0'8-7 -: @? ' >-;* *; :0'8-'@/- ; '(. S. 14 ;< 0- I*:;)- T'(
A:, 1961 >-:'/ G'*
=. I*:;)- ';* ;< *:;)- /'*-7. S. 222" ;
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CHAPTER 1 – CHARGEABILITY UNDER INCOME TAX ACT,
1961
A::;7*8 ; S-:;* 22, 0- A**'/ ='/- ;< 0;- >;>-? :;**8 ;>-*'* 0--; :0'8-'@/- ; '( *7- 0 0-'7 < '---
;*- ;< 0' 0;- >;>-? '*7 *; -7 @? 0- '--- ;-? ; @- '('@/- *7- 0 0-'7 ;< *:;)-
2. * )R-)R3 S*-4!# C-(SIS -5 &4I!#I(% -R !A(#
A))4R(A( *R-
Building )-'* ' :- )'7- > ;< '*? )'-'/ %;;7, )7, ;*-, @: ;
:;*:--& '*7 0:0 :'* @- -7 ' ' 7-//*8 0;-, ;- 0;-, ;>;-.
R;;< *; '/'? --*'/ ;;/,
;;< *; --7 0--' * ;0- :'- ;;< )>;'*. T0--;*7, :;?'7, @':?'7, >/'?8;*7, :0-*, 8'7-*,
);; 8''8-, '*? >'*8 >':-, '@/-, :'/- 0-7, :;':0 ;;), -:. H;-=-, 0- /'*7
'':0-7 ; *;*-7-*'/ @/7*8 )'? @- * 0- '0;'7 :;**-:*8 0'
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PROJECT REPORT ON INCOME FROM HOUSE PROPERTY
@/7*8 ; 0- ;'7, ; :;**-:*8 ;*- 7->')-* ; ;0- 7->')-*, >'*8 >':-,
>/'?8;*7 ;>-?. A* ;*- 7;- *; )-'* ;*/? ' /-8'/ ;*- .-.,
-8--7 ;*- ;< 0- 0;- >;>-?. H;-=-, '/; *:/7- ' D--)-7 O*-.
Deemed Owner [Section 27]: F;//;*8 >-;* '- 7--)-7 ; @- ;*- ;< 0-
0;- >;>-? -=-* 0;80 *; /-8'/-8--7 ;*- ;< 0- 0;- >;>-?
+2 ransfer of house $ro$erty to S$ouse or minor child 7Section 18+29: < '*
*7=7'/ '*;>-? ; 0 >;- ; )*; :0/7 0; '7-'-
:;*7-';* 0-* 0' *7=7'/ %'*-? ;0 R. 5!,!!,!!! ; M. A 0; :;*7-';*
0-* M. A ;/7 @- 7--)-7 ;*- ;< 0- 0;- >;>-?.
!ceptions
%'& I* ;>-?
J $0-- >;>-? '*;>-? '*
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J $0-- '7-'- %;;*'- 0'- .-., M. A '*;>-? ;0
R. 5! L': ; M. A '*7 0- '*;>-? * 0- -'-. A* )>'@/- -'- ' >;>-? 0:0
:'**; @- 7=7-7 '*7 ; 0:0 '* '--- ::--7 *7- /' -.8.. *:- ' -)>/-
:'**; @- 7=7-7 ; '*? '*?:;;>-'=- ;:-?AOP ; 0;)
' ; ' >' 0--;< '//;-7 ; 8=-* ;* /-'- *7- H;- B/7*8 S:0-)- ;< 0'
:;)>'*?:;;>-'=- ;:-?AOP 7--)-7 ;*- ;< 0' 0;- >;>-?.
+> A $erson ac?uiring $ro$erty under section @A of the ransfer of )ro$erty Act
7Section 18+iv9: A >-;* 0; ':- ':'/ >0?:'/ >;-;* ;< '* ));='@/-
>;>-? *7- -:;* 53A ;< 0- T'*-? A:, 1++2, 7--)-7 ;*- ;;'* :0'- -'7? ;
)'- >'?)-* 0-*-=- 0- >'?)-* @-:;)- 7-.2
:& T0- @?- 0;/7 ':- ':'/ >0?:'/ >;-;* ;< 0- >;>-?. I -*;80
< '*
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+@ A )erson having rights In a building under section 1B 4A+f of the Income-;7 /- 0'* ;*- ?-'.
b) I< ;8*'/ /-'-
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Important points:
1. I*:;)- * 7>- * 0- :; ;< /' 0-*
'& A*? >-;*, 0; -:-=- -* ;< 0- 0;- >;>-? ' ;*-, * :'- >;>-?
/- ;, ;/7 @- '--- -;* 7-:/'-7 @? 0- :; '
;*- ;/7 @- '--- ;>-? ; @- '('@/- *7- 0 H-'7 ;< *:;)- 0;/7 *; @-
-7 @? 0- '--- ;;;/. T0-->;- '*7 < /-
; 0-* :'* @- -7 @? 0- -*'* >;- %;/;?-- @? 0- '--- ' *;)*'/ -* ;< R.1!!);*0, 0- >>;- ;< /-*8 ;< 0-
-7-*'/ '- ; * 0- @*- -
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>;/:- ';*, :-*'/ -(:- ;
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. 6here it is se$arable: $0-- /-*8 ;< >;>-? ->''@/- /'*, )':0*-? '*7 -?.
3& Income from house $ro$erty in foreign country: $0-- '--- -7-* ;
-7-* '*7 ;7*'/? -7-* * I*7' '*7 0- 0' >;>-? * -? -? *; :0'8-'@/- ; '(
#a$ %arm &ouse: I*:;)- ;=7-7 0'
%& S:0 @/7*8 '-7 * 0- '8:/'/ /'*7 ; 0- ))-7'- =:*? ;
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:0'8-'@/- ; '( *7- 0-'7 P;;>-? -7 >;- 0-* *:;)- ;>-? -(-)>-7 *7- -:;* 11.
#e$ "ropert( o) +egistered ,rade -nion or Local authorit(: $0-- >;>-? 0-/7
@? -8--7 '7- *;* ; /;:'/ '0;? 0-* *:;)- ;>-? *;
'('@/-.
#)$ &ouse "ropert( #"alace$ o) e!*ruler: $0-- 0;- >;>-? ;*-7 @? '* -(
/- 0-* '**'/ ='/- ;< 0' 0;- >;>-? *; '('@/-.
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2 3unicipal alue: M*:>'/ ='/- ='/- ' '--7 @? 0- /;:'/ '0;? ;*8 )*:>'/ '(-.
1 %air rent: F' -* -* ;< ')- ; )/' >;>-? '-7 * ')- ; )/'
/;:'/?. H;-=-, ; >;>-- :'* *-=- @- )/' * -=-? '>-: @ < >;>-? *
*-80@;0;;7 :;)>''@/- * ;)- '>-: ; >;>-? * -;* 0-* -* ;< :0
>;>-? * *-80@;0;;7 // @- :;*7--7 ; 7-:7- R-';*'@/- -(>-:-7 -*.
T0- S>-)- C; ;< I*7' 0-/7 0' R-';*'@/- -(>-:-7 -* :'**; -(:--7 '*7'7
-* < R-* C;*;/ A: '>>/:'@/- * 0' '-'. I )-'* 0- '*7'7 -* 0-
)'()) ');* ;< R-';*'@/- -(>-:-7 -*.6 T0--'/ ='/- O
1 F' -*
$0:0-=- 080- @-: ; 0- )'()) ;< '*7'7 -* < R-* C;*;/ A:
'>>/:'@/-.
#'$ 0ctual rent receied or receia'le '( the assessee #+$: A:'/ -* -:-=-7 ;
-:-='@/- @? 0- '--- 7;- *; *:/7- *-'/-7 -* %R2& '*7 -* -;7 %R3&.
T0---? /- ;
R2 *-'/-7 -*
R3 -* -;7.
0nnual rent )or the preious (ear )or which propert( is let out #+4$: A**'/ -*
)-'*
! Sheila )aushish v. CIT, (1981) 7 ITR I (SC)/ Amola Ram )hosla v. CIT,(1981) 7 1TR #1 (SC)/ !r. Balbir Singh v. #C!, (198#) 1#2 ITR 388 (SC)
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'& 0-- 0- >;>-? /- 0;80; 0- ?-' -*7*8 ;* 0- ='/';* 7'- .-., 0-
>-=; ?-', 0- ':'/ -* -:-=-7 ; -:-='@/- @? 0- ;*- * ->-: ;' ;< 0- >-=; ?-', 0- ');* 0:0
@-' 0- ')- >;>;;* ; 0- ');* ;< ':'/ -* -:-=-7 ; -:-='@/- @?
0- ;*- -;7 ;>-? /- ; ' 0- >-;7 ;< -/=-
);*0 @-' ; 0- *)@- ;< );*0 %*:/7*8 >' ;< ' );*0& ;>-? /- ; 7*8 0- >-=; ?-'.
/am$le 2: I< >;>-? /- ; R 5,!!! >) 0-* '**'/ -* R 6!,!!!.
/am$le 1: A 0;- >;>-? /- ; .). '*7 .). I -)'* =':'* ?*8 '*? ;0- >;>-? ;< 0- '---.
%& A// 0- -';*'@/- -> 0'7 @--* '-* @? 0- '--- ; 8- 0- 0;- >;>-?
=':'-7.
%=& A// 0- -';*'@/- -> 0'7 @--* '-* @? 0- '--- ; *- /-8'/
>;:--7*8 ;>-? -)'*-7 =':'* -=; ?-' 0- -* ;< 0- =':'* >-;7 ; @- -7:-7 ;>-? /- ; ) '*7 0- -*'*
=':'-7 0- >;>-? ';>-? /- ;
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A**'/ R-* %R1& R 6!,!!! %R 5,!!! ( 12&
U*-'/-7 R-* %R2& N/ ' 0-- *; *-'/-7 -*
R-* -;7 %R3& 1!,!!! %R 5,!!! ( 2&
T0--;>-? /- ; .). '*7 .). I -)'* =':'* -?
%&T0- >;>-? /- ; >;>-? @ 0;/- ; '*? >' ;< 0- >;>-? -)'*-7 =':'*
7*8 0- 0;/- ; '*? >' ;< 0- >-=; ?-'. I *; :;)>/;? 0' 0- >;>-?
0;/7 @- ':'//? /- ; 7*8 0- >-=; ?-', 0- *-*;* ; /- ; )>;'*.
T0--;>-? 0-/7 @? 0- '---
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PROJECT REPORT ON INCOME FROM HOUSE PROPERTY
T0- ;7 >;>-? /- * S-:;* 23%1&%:& 7; *; '/ ;< ':'/ /-*8 ; @
'/ '@; *-*;* ; /- ;K < >;>-? 0-/7 @? ;*- ;>-? :;=--7 @? 0 :/'-. "
%&A:'/ -* -:-=-7 ; -:-='@/- @? 0- '--- /- 0'* R-';*'@/- -(>-:-7
-*.
%& T0 /; * 0- -* ;*/? 7- ; =':'*:? '*7 *; 7- ; '*? ;0- ;=7-7 * 0- A: '*7 =-? :/-' 0' *-*;* ;< 0- /-8/'- ; 8=- -/-< ;
0- '--- 0;- >;>-? -)'*-7 =':'*. T0--
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+a Reasonable e/$ected rent ;*/? 7- ; =':'*:? '*7 >'/? 7- ; ;0-
-:-7 -*
;*/? 7- ; -:-7 -*
%ross Annual Dalue of Self -ccu$ied Residential *ouse )ro$erty 7S-R*)9
A::;7*8 ; S-:;* 23%2&, 0--
%'& P;>-? -7 @? '--- 0;80; 0- >-=; ?-' >;-KO
%@& S:0 >;>-? :;/7 *; @- ;::>-7 @? 0- '--- 0;80; 0- >-=; ?-'
;- @-:'- -0- 7- ;
-)>/;?)-* ; @*- ; >;/':-
'*7 *; ;0- @-*--?
T0-* G; A**'/ '/- ;/7 @- N/.
A 0;- /;? -7-*:-K ;*/?
-- 0' 0;- 0;/7 @- '='/'@/- ;-;* ;< ' 0;-
TAXATION LAW Page 18
(a) R-';*'@/-
-(>-:-7
-*
V
L; 7- ; =':'*:?
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PROJECT REPORT ON INCOME FROM HOUSE PROPERTY
;*-7 @? 0), 0;80 0- )'? *; @- ':'//? >--* * 0- 0;- '*7 0-* 0- ''?
;-;* ;< 0 -7-*'/ 0;- '*7 ' :0 0-
:'**; @- 7-*-7 0- @-*-;>-? 0 G; A**'/
'/- N/ < ;>-? :;/7 *; @- ;::>-7 @? 0- '--- 0;80; 0-
>-=; ?-' ;- @-:'--0- 7- ; -)>/;?)-* ; @*- ; >;/':- * ' 0;- >;>-? *; ;*-7 @? 0).
%& T0- '7 >;>-? *; /- ; ' ;< 0- >-=; ?-'.
%=& N; ;0- @-*--?.
/am$le: M. A ;* ' 0;- * C0'*78'0. D*8 >-=; ?-' 2!!91!, 0-
' ;*8 * D-/0 '*7 ' -7*8 * ' -*-7 '::;));7';* 0--. H 0;- *
C0'*78'0 -)'*-7 =':'* 0;80; 0- >-=; ?-' 2!!91! '*7 0- 77 *; '-
'*? ;0- @-*-;>-?.
9 CIT v. !ee'a Seth, (2$$#) 1 SOT 3# (e)*
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PROJECT REPORT ON INCOME FROM HOUSE PROPERTY
F0- D-/0 H80 C; 0-/7 0' S-:;* 23%2&%@& ;/7 '>>/? ; '// 0;-
:'- 0-- *7- 0- >;=;* ;< 0- C;*;*, ;-;* /- :;)>'*?,
>'*-0> >;- *; * 0-
:'>':? ;< 0- ;*- @ ' '* -)>/;?-- 0-* // @- /- ; 0;- >;>-? '*7
G; A**'/ '/- // @- 7--)*-7 '::;7*8 ; S-:;* 23%1&. $0-- '---
/- ; 0 ;* 0;- >;>-? ; 0 -)>/;?-:;)>'*? 0:0 * * ' '//;-7
; '--- ' -* --&. A--- ' *; -*/-7 ':? ;< 0- ;*-
@ ' '* -)>/;?-- 0--;>-? '*7 G; A**'/
'/- // @- 7--)*-7 '::;7*8 ; S-:;* 23%1& D8 +8 Sunder +a9 v I, +2B8B1 a/man >@H +A) .
3& I) more than one propert( is occupied '( the assessee during preious (ear: I< );-
0'* ;*- >;>-? ;::>-7 @? 0- '--- 7*8 >-=; ?-' ;>-? // @- -'-7
' -/-7 0;- >;>-? '*7 G; A**'/ '/- // @- 7--)*-7
'::;7*8 ; S-:;* 23%2& .-., */. H;-=-, -)'**8 // @- D--)-7 ; @- L-
O 0;- >;>-? '*7 8; A**'/ '/- // @- 7--)*-7 '::;7*8 ;
S-:;* 23%1& .-.,
%'& R-';*'@/- -(>-:-7 -*K ;
%@& A:'/ -* -:-=-7 ; -:-='@/- @? 0- '---
0:0-=- 080-. H;-=-, S-:;* 23%1&%:& // *; @- '>>/:'@/-. A * :0
';* ':'/ -* -:-=-7-:-='@/- */. T0--
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PROJECT REPORT ON INCOME FROM HOUSE PROPERTY
G; A**'/ '/- R-';*'@/- -(>-:-7 -*.
I. here propert( is partl( Sel) Occupied and partl( let out [Section 26#6$]: I;>-? :;* ;< ; ; );- *7->-*7-* -7-*'/ * '*7
;*- ; );- * '- ;::>-7 @? 0- '--- '/ '(- /-=-7 @? /;:'/ '0;? * ->-: ;< 0- 0;- >;>-? //
@- 7-7:-7 <
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PROJECT REPORT ON INCOME FROM HOUSE PROPERTY
%& :0 '(- '- ':'//? >'7 @? 0- '---.
Important points:
I. M*:>'/ '(- *:/7- -=:- '( '/;.
II. N; 7-7:;* :'* @- :/')-7 ;* >'?'@/- @' @ ;*/? ;* >'7 @'. T0--'/ '(- /-=-7 @? /;:'/ '0;? '*7 *; >'7 @? '--- 7*8
>-=; ?-' '- *; 7-7:@/-.
III. M*:>'/ '(- ;< >' >-=; ?-' >'7 @? 0- '--- * :-* >-=;
?-' '- 7-7:@/-.
I. $0-- 0;- >;>-? '-7 ;7- I*7' '*7 M*:>'/ '(- /-=-7 @?
/;:'/ '0;? ;< 0' '/ '(- '- '/; 7-7:@/-.
. A )*:>'/ '( ) @- >'7 @? '--- %/'*7/;7& 0--'/ '(-
/-=-7 @? /;:'/ '0;? '*7 >'7 @? -*'* '- *; 7-7:@/-.
;et 0nnual 1alue #;01$ . /01 * 3unicipal ta!es
(b) Standard Deduction [Section 2;>-?.
II. T0- ':'/ -(>-*7- *:-7 @? 0- '--- *; )>;'* '*7 ');* ;;- ;< >:0'-, -:;*:;*, ->', -*;=';* ;
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:;*:;* ;< 0- 0;- >;>-? '*7 0- >'?*8 *-- ;* :0 @;;-7 :'>'/
0-* *-- >'7>'?'@/- 7*8 :-* >-=; ?-' '//;-7 ' 7-7:;*.
Important points:
I. F; :/')*8 7-7:;* 0-- 0;/7 @- '/, *-- '*7 0;- >;>-? .-., < @;;-7 :'>'/ *; >-* ;* 0;-
>;>-? @ ;)-0-- -/- 0-* *; 7-7:;* :'* @- :/')-7 *7- -:;*
24%b&.
II. D-7:;* '//;-7 ;* '**'/ *-- -=-* < *-- *; >'7>'?'@/-
'**'//? .-. *-- >'7>'?'@/- );*0/?, '-/? ; 0'/-=; ?-' @ 0' *; @--* >'7 @?
'--- 0-* 0- :'* :/') 7-7:;*.
I. I*-- 7-7:@/- 0; )'()) :-/*8. .-. 0'-=- ');* >'?'@/-
' *-- '//;-7 ' 7-7:;*.
. D-7:;* '//;-7 -=-* < *-0- >*:>'/ *; *-- :0'8-7 ;* >;>-?
.-., 0-0- *-:-7 ; -:-7 /;'* '*7 0-0- '*? 80*-- * 0-
>;>-? 8=-* ' -:?.
I. I*-- ;* *>'7 *-- *; '//;-7 ' 7-7:;*.11
II. A*? @;-'8- ; :;));*
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:0 *-- ;* *'/)-* :;*- *-- ;* :'>'/ @;;-7 *7- -:;*
24%@& '*7 '//;-7 ' 7-7:;*.13
X. S:0 7-7:;* // @- '//;-7 -=; ?-' 0-* :0 >:0'-,
-:;*:;*, ->', -*;=';*, ; :;*:;* ;< 0- 0;- >;>-?
:;)>/--7.
XI. P'?)-* ; ' )*:>'/ :;>;';* -* @? '* '--- ;'7 ')> 7? ;>-? -7 '*7 *; 0- ;7
W0;- >;>-?.16 T0--:0'- ' >/; ;< /'*7 '*7 *; >;- ;< :;*:;* ;< @/7*8 ;* .
H;-=-, 7-7:;* :'* @- :/')-7 7*8 >-=; ?-' 0-* :;*:;* ;/--.
XI. I< :'>'/ @;;-7 '?'@/- ;7- I*7' *;
7-7:;* :'* @- :/')-7 < ;* :0 *-- *-0- '*? '( >'7 ; 7-7:-7 '
;:- *; -:>-* 0'=*8 '*? ->--*'=-'8-* * I*7' ; >'? '( ;* :0
');* ; -:-=-7 S-:;* 25.
(d) Interest o) "re*construction period [!planation to Section 2;>-? 0-* '--- :'* :/') 7-7:;* -/'*8 ; *-- ;< P-:;*:;*
>-;7. F; 0 '88-8'- 0- *-- ;< P-:;*:;* >-;7 '*7 7=7-, *;
13 CIT v. #aster Suh&ant Singh, (2$$#) 19! CTR (P.H) 122*
1 CIT v. (iccadily /otels (- $td., (2$$#) 97 1T #! (C,*)*
1# CIT v. (remnath #otors (.- $td., (2$$7) 1!3 Ta%&a' 383 (Ra)*
1! CIT v. Amrit $al Adlaha, (2$$7) II SOT !7 (A45*) (SMC II)*
TAXATION LAW Page 2
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-=; ?-'
* 0:0 0;- ':-7 ; :;*: :;)>/--7. R-)'**8 -=; ?-'.
=$ 6hat is )re-:-7*8 0- 7'- ;< :;)>/-;* ;< :;*:;* 7'-
;< ':;* O
%@& 7'- ;< ->'?)-* ;< /;'*
$0:0-=- -'/-
1. #eductions regarding Self -ccu$ied *ouse )ro$erty 7S-R*)9
T0- G; A**'/ '/- ' :'/:/'-7 *7- -:;* 23%2& '/'? */. F;) GA 8=-
;- ;< >:0'-, -:;*:;*, ->', -*;=';* ;
:;*:;* ;< 0- -/-7 0;- >;>-? '*7 0- >'?*8 *-- ;* :0
@;;-7 :'>'/ 0-* )'()) ');* ;< 7-7:;* -8'7*8 *-- R 3!,!!!.
H;-=-, )'()) ');* ;< 7-7:;* R 1,5!,!!! < '/ @;;-7 ;* ; '/ 1, 1999.
(ii) C'>'/ @;;-7
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PROJECT REPORT ON INCOME FROM HOUSE PROPERTY
(iii) T0- ':;* '*7 :;*:;* :;)>/--7 0* 0-- ?-' -: ;< /;'* 8=-* *:>'/ ');* ;'*7*8 *7- -'/-
/;'* '-* '/ ) @-
@;;-7 ;* ; '/ 1, 1999. T0--'/
@;;-7 @? 0- '--- >;- ;< >:0'- ; -:;*:;* ;< 0;-
>;>-? 0-* '--- :'* :/') 7-7:;* -/'*8 ; *-- ;< P-:;*:;*
>-;7. F; 0 '88-8'- 0- *-- ;< P-:;*:;* >-;7 '*7 7=7-, *;
-=;
?-' * 0:0 0;- ':-7 ; :;*:;* :;)>/--7. R-)'**8
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Solution:
(i) D'- ;< ->'?)-* '*'? 16, 2!15.
T0---;7 '?)-* *- 3!, 2!11.
T0---;7
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PROJECT REPORT ON INCOME FROM HOUSE PROPERTY
*--
T;'/
7-7:;*
R R
1,1","!!
R "2,49! R 5","!! R 5","!! N/
(iii) D'- ;< ->'?)-* O:;@- 31, 2!!".
T0--'/ S-:;* 24%@&
M'()) /) R
3!,!!! ; R 1,5!,!!! *
-(:->;*'/ :'-.
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%=&I*-- ;< P-:;*:;*
>-;7 %planation ; S-:;*
24
%=& I*-- ;< P-
:;*:;* >-;7
%planation ; S-:;*
24 ')- ' :'- *
LOHP
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PROJECT REPORT ON INCOME FROM HOUSE PROPERTY
CHAPTER 3 – MISCELLANEOUS PROVISION
48 6*R 4(RA!I# R( IS RA!I# S4&S04(!3 7SCI-(S
1@A A(# 1@AA9
%& here unreali5ed rent was o) the preious (ear 2???*2??4 or o) earlier
preious (ear and was reali5ed in assessment (ear 2??4*2??2 or earlier
assessment (ear or where unreali5ed rent was allowed as deduction in
assessment (ear 2??4*2??2 or in earlier assessment (ear [Section 2@0]:
$0-- *7- 0- -'/- /' '--- 0' :/')-7 7-7:;* -8'7*8*-'/-7 -* * 0- '-)-* ?-' 2!!12!!2 ; * -'/- '-)-* ?-'
'*7 '--- 0' -'/-7 '*? ');* * ->-: ;< :0 -* 7*8 '*?
'-)-* ?-' .-., 2!!12!!2 ; -'/- '-)-* ?-' .-. 2!!!!1 '*7 ;
;* 0-* ');* ; -'/-7 ;/7 @- *:;)- ;>-? ;< 0-
>-=; ?-' * 0:0 -'/-7.
Important points:
I. S-:;* 25A '>>/:'@/- 0-- *-'/-7 -* ;< 0- >-=; ?-'
2!!!2!!1 ; ;< -'/- >-=; ?-'.
II. A--- // *; @- -/8@/- -=; ?-' '*7 ' -'/-7
* '-)-* ?-' 2!!22!!3 ; @--* ?-' 0-* ');* ; -'/-7
;/7 @- *:;)- ;>-? ;< 0- >-=; ?-' * 0:0
-'/-7.
TAXATION LAW Page 3$
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PROJECT REPORT ON INCOME FROM HOUSE PROPERTY
Important points:
I. S-:;* 25AA '>>/:'@/- 0-- *-'/-7 -* ;< 0- >-=; Y-'
2!!12!!2 ; ;< @--* >-=; ?-'.
II. T0- ');* ; -'/-7 0;/7 *; @- *:/7-7 * G; A**'/ '/-
-'/- '*7 0;/7 @- 7-7:-7 >/:'@/-. A*7 '--- //
*; @- -/8@/- ;>-? :;**8 ;< @/7*8 ; /'*7
'>>-*'* 0--; '*7 -:-=- '*? ');* ' '-' ;< -* * :-* >-=; ?-'
0-* ');* ; -:-=-7 '>/:'@/- -=-* < '--- *; ;*- ;< 0- 0;- >;>-?
* 0- :-* >-=; ?-' * 0:0 -* -:-=-7.
/am$le: M. A ;* ' 0;- >;>-? 8=-* ;* );*0/? -* ;< R 1!,!!! ; '
:;)>'*?. R-* ' *:-'-7 ;* A>/ 15, 2!14 -:=- -
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A-' ;< -* -:-=-7 * 0- >-=; ?-' 2!1415 R 6!,!!!
S'*7'7 7-7:;* R 1+,!!! %3!1!! 6!,!!!&
T0---=; ?-' 2!1415 *7-
-:;* 25B R 6!,!!! V R 1+,!!! R 42,!!!
T0 *:;)- * '77;* ; *:;)- ;>-? ;< :-* >-=; ?-'
%2!1415& ' :'/:/'-7 '::;7*8 ; S-:;* 23 '
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PROJECT REPORT ON INCOME FROM HOUSE PROPERTY
%@& $0-- :0 ;*/? ;*-7 H;- >;>-? -/-7 0;- >;>-?
0-* '**'/ ='/- ;*'/ :'-& -8'7*8 '**'/ *-- ;>-? '*7 0- 0'-
'- 7--=; ?-' R 2!,!!!.
F*7 ; *:;)- *7- 0-'7 ZI*:;)- ;>-?
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R 16,5!!
I*:;)- ;>-? ;< M. C 25 ;< R 66,!!!
R 16,5!!
/am$le 1: M. A, M. B '*7 M. C, '- :;;*- ;< ' 0;- >;>-? '*7 0- 0'-
'- *; 7-;>-? ' :;*:-7 ;* D-:-)@- 15,
2!!+ '*7 '**'/ *-- >'?'@/- -? /-; 0;- >;>-? 0
V G; A**'/ ='/- R 4,!!,!!!.
V M*:>'/ '(- >'7 * :-* >-=; ?-' R 2!,!!!
F*7 ; *:;)- *7- 0- 0-'7 ZI*:;)- ;>-?
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I*:;)- ;>-? ;< M. B 13 ;< R 66,!!!
R 22,!!!
I*:;)- ;>-? ;< M. C 13 ;< R 66,!!!
R 22,!!!
/am$le : M. A, M. B '*7 M. C, '- :;;*- ;< ' 0;- >;>-? '*7 0- 0'-
'- 7--=; ?-' R 2!,!!!
V L;'* ' '-* ;* D-:-)@- 15, 2!!6
F*7 ; *:;)- *7- 0- 0-'7 ZI*:;)- ;>-? -? ;< M. A 5! ;< %& R 1,5!,!!!
%& R "5,!!!
I*:;)- ;>-? ;< M. B 25 ;< %& R 1,5!,!!!
%& R 3",5!!
I*:;)- ;>-? ;< M. C 25 ;< %& R 1,5!,!!!
%& R 3",5!!
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/am$le >: M. A, M. B '*7 M. C, '- :;;*- ;< ' 0;- >;>-? '*7 0- 0'-
'- *; 7-;>-? ' :;*:-7 ;* D-:-)@- 15,
2!!+ '*7 '**'/ *-- >'?'@/- -? -/-7 0;- >;>-? 0
V M*:>'/ '(- >'7 * :-* >-=; ?-' R 2!,!!!
V L;'* ' '-* ;* D-:-)@- 15, 2!!6
F*7 ; *:;)- *7- 0- 0-'7 ZI*:;)- ;>-? -? ;< M. A 13 ;< %& R 1,5!,!!!
%& R 5!,!!!
I*:;)- ;>-? ;< M. B 13 ;< %& R 1,5!,!!!
%& R 5!,!!!
I*:;)- ;>-? ;< M. C 13 ;< %& R 1,5!,!!!
%& R 5!,!!!
0 6**R I(C-" 5R-" )R-)R3 CA( & I( !-SSG
Let*out house propert(: I* :0 >;>-? 0-- :'* @- /; *7- 0-'7 I*:;)- ;>-?, '/ '(- >'7 * :-* >-=; ?-' '- );- 0'* G; '**'/ ='/-
O
(ii) A**'/ *-- >'?'@/- @? '---
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Sel)*occupied house propert(: A * :0 :'- '**'/ ='/- '/'? N/. T0--',
-:. 0-* *:;)- ;>-? '/'? *-8'=-.
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BIBLIOGRAPHY
&ooks
RATTAN, YOTI, ZTaation &aws', 60 E7., B0'' L' H;-, N- D-/0, 2!14.
6eblinks
0>.*:;)-'(*7'.8;=.*\/'?;157);@/-;>-?7-7:;*'//;-7*7-*:;)-0;-
>;>-?\62+453.0)/
0>.:0'--7:/@.:;)*:;)-;>-?7-7:;*