It is proposed that the Direct Taxes Code, 2010 (‘DTC') will be introduced from April 1, 2012. It is an attempt to simplify the overall tax structure and lay-out of the tax provisions in a manner that these are better understood by the common tax payer. In this context, significant changes have been proposed in respect of taxability of house property income, which are worth noting. The income from letting of any house property owned by a person shall be computed under the head “Income from House Property”. The income from any house property (subject to certain exceptions) shall be computed under this head, regardless of the fact that the letting, if any, of the property is in the nature of trade, commerce or business. It has been clarified that provisions of taxability of income from house property shall not be applicable to the house property which is not ready for use during the financial year.
Source: The Hindu Business Line
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