Monthly Archives: May 2026

Capital Gains Introduction Capital gain head is one of the five heads of income under the Income-tax Act, 1961, with its computation governed by the provisions in Part E of Chapter IV. Chargeability As per Section 45(1), profits or gains from the transfer of a capital asset are taxable in the year of transfer. However, not… Read More »

Interest on Housing Loan Interest paid or payable on borrowed capital for the purchase, construction, repair, or renovation of a house property is deductible under section 24(b) from the income taxable under the head “Income from House Property.” The quantum of deduction depends on the use of the property (let-out, self-occupied, or deemed let-out). Quantum of Deduction… Read More »

Computation of Income from House Property Income from house property is computed by determining the annual value of the property and allowing deductions such as municipal taxes, standard deduction, and housing loan interest. Properties are categorized as let-out, self-occupied, or deemed let-out. Computation Process Categories: Let-Out Property: Annual value is based on the higher of… Read More »

Deemed owner of House Property Circumstances of Deemed Ownership Transfer to Spouse/Minor Child Without Adequate Consideration: If a person transfers house property to his spouse or minor child (excluding a married minor daughter) without adequate consideration, he is deemed the owner. However, if transferred to a spouse under a separation agreement, the recipient is considered… Read More »

Income from House Property Introduction Income arising from any property, being building or land appurtenant thereto, is taxable under the head “Income from House Property.” Properties are categorised as let-out, self-occupied, or deemed let-out, and their income is computed based on annual value, considering factors such as municipal valuation, fair rent, and actual rent. The… Read More »

Business Connection of Offshore Funds in India Introduction Section 9A of the Income-tax Act provides a special regime for offshore investment funds, ensuring that the presence of an Indian fund manager does not create a business connection or result in the offshore fund being treated as a resident in India. Key Provisions of Section 9A The presence… Read More »