Conditions for Income- Conditions for Income-
Conditions for Income- Conditions for Income
Conditions for Income
Conditions for Income Conditions for Income assigned to the
land takes interest in terms of building.
For example, this is your house and you have rented it out.
This is my house and I have rented it out.
And behind this house, I had made a small garden as well.
Please forgive my drawing. My hand is a little tight in the
drawing.
So, I have rented out this whole house.
Now, this land, this is my building and this is my land.
I can't separate this. This is attached.
So, this entire income of my rent will go to the house
property. Simple.
But there is another case as well.
The other case is that I have this land lying empty.
I have a plot lying empty.
If you rent this out, then it will be a matter of whether
it will go to your house property or business.
This is what you have to think about, friends.
Sir, why are you talking about business?
Sir, I am talking about business because sometimes, this
empty plot, if you rent it out to someone, that person
turns it into a parking lot.
Because parking is a big problem in cities.
So, if I have an empty plot lying around, if I rent it out
to someone, that person turns it into a parking lot.
Now, that will become my case.
I will have to think about whether I have a business to
rent out such empty plots.
It is also possible that I have different plots in
different cities and I rent those plots out to people and
my main business is this.
So, if this is the case, then it will be in the income of
your business.
But if you rent it out casually, and it is not your main
business, and you are looking for a side income, then it
will be in the income of your house property.
So, our first condition is that a building and land will be
in the property.
Now, let's move on to the second condition.
The second condition is that the associate must be the
owner of the property.
Our associate,
the associate must be the owner of the property.
What should he be?
He should be the owner.
Will the tenant also be taxable for the house property
income?
No, sir.
The tenant is not taxed.
The owners are taxed.
Owner, this is the value of becoming an owner.
Remember, you should be the owner.
You should be the owner of that land, that house, that
office.
You should be the owner.
If you are the owner, then only the annual value of that
property will be considered in the income of your house
property.
If you have rented a house, or if you have bought something
on rent, then your annual value will not be considered.
It does not sound good to say, but this is the reason why
the tenants do not have any respect.
The income tax people also do not respect the poor people.
See, this is the situation in front of you.
But what to do?
It is bad, but it is business.
So, the government says, if you are the owner of your
property, then we will collect the tax from the owner.
We are not collecting any tax from the tenants.
And if you are the owner, then it will be included in your
income.
Let's go to the next condition.
The next condition is,
where are you using the property?
See, if you are using the property, as I explained to you
earlier in the exceptions, like the example of Mukesh
Ambani, if my property is in a showroom, and I am doing my
own business from that showroom, then how will I pay my tax
in the house property?
In the house property,
I will not be taxable in any way.
See, this is a simple thing.
You should use it as a business and profession.
You should also read the side notes, that the property
should not be used for the purpose of business and
profession.
The income earned by the associate engaged in the business
of letting out of property on rent would be taxable as a
business and profession.
I will give you the reference of DLF as an example.
The work of DLF was that they used to rent their property.
So, the income of DLF would be taxable as a business.
It would not go to the house property but would go to the
business.
You can also note this down so that you can remember it in
the long term.
There is a new point that sometimes arises for those people
for whom this is a stock.
Sometimes the property is a stock for you.
Do you understand what this means?
What do you understand from a stock?
Yes, friends, I am not able to sleep.
I am asking you, what is the meaning of a stock?
Stock.
I do business of any kind.
It becomes my stock.
Like I do business of clothes.
For example, I have a shirt business.
So, I will buy a shirt.
It will become my stock.
Okay.
Or for example, I have a share market business.
It is my business to buy and sell shares.
So, I buy shares.
They become my stock.
Okay.
If I have a job of buying and selling property, what will
become my stock in that?
Have you ever thought about it?
In that, our stock will become a house property.
So, what should we do in that case?
Then, will we have to take its annual value as well?
In the income of the house property.
For example, I have a job in the property business.
It is my property business.
I buy a house.
After 6 months or a year, its value increases.
I sell it further.
Now, what should I do?
Will I pay tax on its annual value as well?
This is wrong.
You will take tax from me in two places.
Because it is my business.
I buy a house.
If its value increases, I sell it further.
First, I will pay tax on it in the business.
Second, you will take house property from me.
This is wrong.
It is good to kick a poor man's stomach.
So, the government said, if you have that stock, we will
give you a leave of two years.
When your property is constructed and you get a certificate
of completion from your authority, that your property is
complete, its construction is complete, if it remains
vacant for two years, we will take its annual value as zero.
But if it remains vacant for the third year as well, we
will not take its annual value as zero.
We will take the annual value that we get from our
procedure.
The government has given us this advantage for two years.
I want you to read this once.
It says that the annual value of the house property will be
charged under the house property where it is held by the
SSC as stock.
I have that stock.
This is my stock in trade.
I have to buy a house.
When its value increases,
I have to sell the house.
In the case of stock, the annual value will be treated as
nil.
Its annual value will be nil.
What will be its annual value?
Its annual value will be nil.
But for how long will it be zero?
For a period of two years.
If your house is constructed today and you get a
certificate of completion from an authority, then for two
years, the first year and the second year, as long as its
value is zero, and even for the third year, if it is not
yours, then its annual value will be taxed.
Do you understand? Two years from the end of the financial
year in which a certificate of completion is obtained from
the authority.
At the end of the financial year, when you get a
certificate of completion from an authority, like in Noida,
if you get a certificate of completion from an authority,
then you have to pay two years at the end of that year.
You have to pay two years from the 31st of March.
If it is not sold for two years, then its value will be
zero.
Its annual value will be zero.
When it is zero, there will be no tax.
In the third year, if it is left empty, if it is not sold
for the third year, then its annual value will be taxed.
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