Schedule HP – Details of Income from House Property

•Section 23 , Section 24 , Section 25 , Section 25A , Section 26 and Section 27 of Income-tax Act, 1961

• Rule 4 of the Income-tax Rules, 1962

Income is taxable under the head 'house property' if it arises from a property consisting of any building or lands appurtenant thereto. For computation of income under this head, a house property is classified into three categories - let-out, self-occupied and deemed let-out house property. The income from a house property is computed on basis of its annual value. Various factors such as municipal valuation, fair rent, standard rent and actual rent are considered to arrive at annual value. Even if a property is not actually let-out during the year, annual value of a property is computed on notional basis and, accordingly, charged to tax. However, if property is self-occupied or cannot be occupied by the owner due to any reason, then the annual value of any two of such properties is taken as 'nil'. Further deductions can be claimed such as a standard deduction of 30% and interest on a housing loan (subject to prescribed limits for self-occupied property).

This schedule applies to ITR-1 to ITR-7