FAQs on Income from house property

1. What is house property under Income-tax Law?
House property refers to immovable property like land or buildings, which can be self-occupied, let-out, or deemed to be let-out.

2. How is income from self-occupied property taxed?
Income from self-occupied property is not taxed, and its annual value is considered nil. However, you can claim a deduction for home loan interest (up to ₹2 lakh).

3. How is income from let-out property taxed?
Income from let-out property is taxed as rental income. You can claim deductions such as 30% for repairs/maintenance and interest on home loan (up to ₹2 lakh for self-occupied or no limit for let-out property).

4. How are capital gains from the sale of a house property taxed?
Short-term Capital Gains (STCG): If sold within 2 years, gains are taxed at 30%.
Long-term Capital Gains (LTCG): If sold after 2 years, gains are taxed at 20% with indexation.

5. Can I claim a deduction for municipal taxes paid?
Yes, municipal taxes paid are allowed as a deduction from the annual value of the property.