Income Tax on Rental Income – House Property Tax

House Property is regarded as a source of income for Income-tax purposes. For this purpose Income Tax Act, 1961 (the Act) classifies ‘buildings and/or land appurtenant thereto as House Property.  Under the Act the owner of a house property (consisting of any building or land appurtenant thereto) is taxed on the income in the form of its annual value under the head “Income from House Property.”

As per Section 22 of the Act “House Property” does not include vacant land. Income derived from a vacant land is charged either under the head “Income from Business or Profession” or under the head “Income from Other Sources” depending upon its nature. The existence of a building is, therefore, an essential pre-requisite. Building will of course, include residential house (whether let out or self-occupied), office building, factory building, godowns, flats etc.  And the purpose for which the building is used by the tenant is also immaterial.  Thus, income from letting out godowns will be taken as income from house property.  It does not make any difference at all if the property is owned by a limited company or a firm.  However if the owner occupies the house property for the purpose of his own business or profession, no tax is to be paid under this head in respect of such property.

We at have the expertise in handling individual taxation, do let us in case you any such issue troubling you. provides most hassle free tax return filing/ online return filing experience. Once you have collected, your salary certificate and other documents, we request you to please log in to or you can also directly mail at to submit the details. Upon receiving the documents, we would contact you to file your return of income.

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