Under the Income-tax Act, 2025, rent received by a tenant from subletting the house he has taken on…

Section 20(1) of the Income-tax Act, 2025 charges the annual value of a property under the head Income from house property only in the hands of its owner, and a tenant who sublets is not the owner. As the subletting is not a business, the rent falls under the residuary head in section 92(1), "Income from other sources". This corresponds to section 56 of the repealed Income-tax Act, 1961.