Anual value

How detemined
Pars
eofthe club house as contemplaledin
C1 section 22will
taN-Chelnsford Clubv.
varueofthee beoutside
CIT|20001 109 ti purs
annal
income-tax- .One
should also
keep in view
Taxman 215(5C)
poins
hok entries - It a tirm the
following
Othersby.
l hries
by book ransers its
entrics, annual value of the
house propositiens
property to its pat ners
amfer merely arain Har Narain v. property is taxable in beire
CIT|198013Taxman 365 thehandsf 1}e
hssolution, th affixed- Sincethe words (Delhi).
pemanenr lue of
of stalls pern "building" and "house
annualvalue not defined
Salls eAct, permanently affixed to the property" arena
1201T allixed tothe groundis
d Kanaivalal Ninmani[19791 taxable under*xVI
of- In order attract taxability, the onus
to
of
mus the owner of building in question-CITv.
is on the
revenue to pryve
that an
Fuzalbhoy Investment
Co.(P) L1d.|)IJ
aNseSICE
fromttax
incomeexem
is exempt trom tax in
i
property income the
operty following
farm house [sec. 2(1A)()read with
from far sec.
a income value of any one palace of an
|
10()--see also para 278;
ex-ruler [sec.
10(19A)]:
annua income of a local authority [sec.
erty
propincome of an authority 10(20-see para 38.37];
the for
dproperty of cities, towns andconstituted
of villages [sec.
purpose of
planning, developmentor
rovement 10(20A)] :
e of approved scientific research
an
rtyincomee association [sec. 10(2/)];
pro income ofa gamesassociation [sec. 10(23)-see
income of
proper
a university or other educational
para 3843];
institutions
[sec. 10(23C)-see
38.53-2]:
orty income of a hospital or other medical institution
h pro [sec.10(23C)-see para
roperty
income of atradeunion[sec. 10(24)]; 38.53-3

nerty income in the case of a person resident of Ladakh [sec.

10(26A)-see para 38.62]:
income derived from letting of godowns or warehouses
for storage,
aitating themarketing commodities by an authority constituted under processing or
of
law forthe any
heing in force for the marketing of commodities
time [sec. 10(29)]:
held for charitable purposes
house property [sec.
L 11-see para 343]:
income of a political party [sec.
13A-see para 42];
property
forown business or profession [sec.
rODerty used
pro 22-see para 86.3];and
a oneself-occupied property [sec.23(2)-seepara 91],
the of a
co-operative society included in gross
Besides aforesaid exemptions,rental income
totalincomeis subject to the following deductions:
income derived by a co-operative society from the letting of godowns or warehousesfor
storage, processing
or facilitating the marketing of commodities, is wholly deductible under
section 80P(2Xe).
lf the gross total income of co-operative society (not being a housing society or an urban
consumers' society or a society carrying on transport business or a society engagedin the
performance of any manufacturing operations with the aid of power) does not exceed
Rs. 20,000, any income from house property is fully deductible under section 80P(2X).

Annual value -How determined [Sec. 23]

89. Though tax under the head "Incomefrom house property" is a tax on income, yet it is not
atax uponrent but upon inherent capacity of a buildingtoyieldincome. Thestandard selected

asa
measureof the income to be taxed is annual value which is deemed to be the sum forwhich
theproperty might reasonably be expected to be let out fromyear year. fact
to In tax is
charged
on an artificial or notional income,even if the owner does not receive any incomeor even it
there is no of receiving any incomefrom the property.
possibility
The income is termed as "annual value" and defined as "the sum for which the
artificial

might reasonably be expected to let from year

to
property vear".In determining reasonable
rent, severalfactors have to be taken into consideration. These factors play a vital role in