How does the Income-tax Act, 2025 treat the house-property income of a local authority?
Question and options
How does the Income-tax Act, 2025 treat the house-property income of a local authority?
Taxable as business income
Taxable as house-property income
Taxable as income from other sources
Excluded from total income
Answer and explanation
Correct answer: D - Excluded from total income
Schedule III (Table item 22) of the Income-tax Act, 2025 excludes from the total income of a local authority its income chargeable under the heads Income from house property, Capital gains and Income from other sources, and specified business income. It is therefore not taxed under any head.
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