Rent Received or Receivable from house properties owned by a person other than those which are occupied by him for the purpose of any business or profession carried on by him is charged to Income-tax as 'Income from House Property'.
Unlike the other heads of income, Income from house property is a notional income based on a concept called Annual value. This is the value a property is expected to fetch if it is let out. It may be more than the actual rent being received if let out. If it is not let out the expected market/fair rent will be considered as annual value for the purpose of taxation. Property includes the building and the land surrounding it.