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In which of these cases is the income from the building chargeable under the head “Income from house property” under the Income-tax Act, 2025?

Question and options

In which of these cases is the income from the building chargeable under the head “Income from house property” under the Income-tax Act, 2025?

  1. A building let with machinery, the two lettings being inseparable

  2. A building used by the owner for his own taxed profession

  3. A building let to a tenant who runs his own shop in it

  4. A building the owner occupies for his own taxed business

Answer and explanation

Correct answer: C - A building let to a tenant who runs his own shop in it

Section 20(1) of the Income-tax Act, 2025 charges the annual value of buildings owned by the assessee, and a tenant's commercial use does not change the owner's head of income. Section 20(2) excludes portions the owner occupies for his own business or profession whose profits are taxed. Where a building is let together with machinery, plant or furniture and the lettings are inseparable, section 92(2)(g) taxes the income under other sources, unless it is business income.

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