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Suresh owns a building. He uses one half of it as the office of his trading business, the profits of…

Section 20(1) charges the annual value of buildings owned by the assessee under house property, but section 20(2) excludes the portion that the assessee occupies for his own…

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Suresh owns a building. He uses one half of it as the office of his trading business, the profits of which are chargeable to income-tax, and lets out the other half to a tenant. Under section 20 of the Income-tax Act, 2025,

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Correct answer A

Section 20(1) charges the annual value of buildings owned by the assessee under house property, but section 20(2) excludes the portion that the assessee occupies for his own business or profession whose profits are chargeable. So "only the let-out half" falls under house property. Using part of the building for business does not turn the rent from the other half into business income.

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