Assessment ofIncome FromHouse Property

Tax Payers Information Series-17

INCOME TAX DEPARTMENT

Directorate of Income Tax (PR, PP & OL)Mayur Bhawan, Connanght Circus,New Delhi-110001

This publication should not be construed as anexhaustive statement of the Law. In case of doubt,reference should always be made to the relevantprovisions of the Income Tax Act, 1961, Income TaxRules, 1962, Wealth Tax Act, 1957 and Wealth TaxRules, 1957, and, wherever necessary, to Notificationsissued from time to time.

PREFACE

Income from house property is one of the importantheads of income under the Income Tax Act. The tax payershave been, in particular, keen to know about the exemptionsand deductions available to them on repayment of interestand principal of the loan obtained to purchase the houseproperty, if that house property is let out or self-occupied.This booklet, brought out under the Tax PayersInformation Series, is an attempt to help the taxpayers byexplaining the provisions relating to calculation of incomefrom house property in a non legalistic and easy-to-understand language.The booklet has gone through several editions since1994 when it was first published by this Directorate. Thisedition has been updated by Smt. Garima Bhagat, JDIT,Directorate of Infrastructure, New Delhi. Latest provisionsas amended upto the Finance Act, 2008 have beenincorporated in it.It is my earnest hope that the booklet, as in the past,shall be found useful by the taxpayers. Any suggestions forits improvement are welcome.New DelhiDated: 4

July, 2008

(Amitabh Kumar)

Director of Income Tax(PR, PP & OL)