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Which of the following gives rise to taxable income under the head Income from house property?

Question and options

Which of the following gives rise to taxable income under the head Income from house property?

  1. A house its owner occupies and selects for nil annual value

  2. A flat owned by an individual and let to a tenant

  3. A part of a building used for the owner’s own taxable business

  4. A building owned by a local authority and let to a tenant

Answer and explanation

Correct answer: B - A flat owned by an individual and let to a tenant

Section 20 of the Income-tax Act, 2025 charges the annual value of a building owned by the assessee, so an individual’s let-out flat yields taxable house-property income. A self-occupied house selected under section 21(6) has nil annual value, the part used for the owner’s own business is excluded by section 20(2), and a local authority’s house-property income is excluded from total income by Schedule III (Table item 22).

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