Sometimes, tax is payable on deemed income from unoccupied house

• August 19, 2022
• CA Chandan Agarwal's Office

A house owner can claim only up to two properties as self-occupied

Section 23 of the Income-Tax (I-T) Act, 1961, governs how the annual value of a property is determined for calculating income from house property (and thereby arriving at a house owner’s tax liability). This section can be confusing as the rules that apply vary in different scenarios. Property owners need to understand them to avoid being hauled up by tax authorities. .