Direct tax code recently has set out many provisions which would modify the provisions in respect to ‘income from house property’ which will ease the problem of determination of income from house property along with reducing any chances of litigation in such respect to nil.
Some important points are following:
- House property shall be charged to its owner irrespective of whether the property is let out for business purpose or any other matter. In other words, irrespective of the purpose of the house property, it will be charged under the same head, that is, income from house property.
- If present condition is taken into consideration then, if a inseparable building is let out with the facility of plant and machinery, it will be charged under the head business income or other income, but, according to the provisions of the new tax code, it will be charged under the head, income from house property.
- If a property is having multiple owners and the property of each individual can be determined and is ascertainable, then such shall be computed separately for each co-owner. But it should be taken into consideration that when a property is used for business or profession it would not chargeable under this head of income from house property.
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