Taxability of Income from

House Property
Basis of Charge U/s. 22
Property should consist of any building or land appurtenant
thereto.

Assessee should be the owner of the property.

 Legal owner or deemed owner.
 U/s. 22 owner may be an individual, HUF, Firm, Company, Co-operative

society, or AOP
 Value of property to be taxed only under the hands of owner.

 Ownership may not extend to the site and superstructure of the building.

 Property should not be occupied by the owner for his

own business or profession.
Points to be focused
Income from sub-letting is not taxable.
Deemed Owner
Transfer to spouse/minor child
Holder of impartible estate
Property held by members of Co-operative Society, Co.,
AOP
Property acquired under power of attorney.
Applicability of Sec. 22 in certain cases
Property in a foreign country.
Disputed ownership
Property held up as stock-in-trade
Treatment of composite rent
 Rent of building + charges of different services
 Letting out of building + Letting out of other assets (not

separable)
 Letting out of building + Letting out of other assets (separable)

House property owned by co-owners

Principle of mutuality.
 Chelmsford Club v. CIT (2000)
Property income not charged to tax
Income from firm house [u/s. 10(1)]
Annual value of any one palace of an ex-ruler [u/s. 10(19A)]
Property income of a local authority [u/s. 10(20)]
Property income of an
 approved scientific research association [u/s. 10(21)]
 educational institution [u/s. 10(23C)]

 Hospital [u/s. 10(23C)]

 trade union [u/s. 10(24)]

 political party [u/s. 13A]

Property held for charitable purpose [u/s. 11]

Property used for own business or profession. [u/s. 22]
Self occupied property. [u/s. 23(2)]