Income from house property encompasses rental earnings from residential or commercial buildings, as well as adjoining land, owned by a taxpayer. Governed by Sections 22 to 27 of the Income Tax Act, it allows deductions such as the standard deduction, interest on housing loans, and property taxes. What is Income from House Property?Income from House Property refers to rental income earned from letting out a building or land appurtenant thereto (such as parking space, garden, or courtyard). This includes residential houses, offices, shops, factories, or commercial complexes.In short, any rental income from a property owned by a taxpayer whether residential or commercial will be taxed under "Income from House Property," unless it is used for their own business or treated as business activity.As per Section 22 of the Income Tax Act, 1961, such income is taxable under the head "Income from House Property" if the following conditions are satisfied:The property must consist of a building or part of a building, along with land attached to it.The taxpayer must be the legal owner (or deemed owner under Section 27) of the property.The owner should not use the property for their own business or profession. If it is used for business purposes, the income is taxable under Profits and Gains from Business or Profession instead.Key Points to NoteRental income only – Income must be like rent or lease, whether received in periodic intervals or as a lump sum.Building and attached land – Rent received for land appurtenant to the building (e.g., parking lot, garden) is also considered house property income. However, if the payment is primarily for land, it is taxed under 'Income from Other Sources'.Not a business activity – If the taxpayer is in the full-fledged business of renting properties, the income is taxed as Business Income and not as House Property Income.Example: Renting out one apartment = House Property Income.Running a hostel with multiple rooms = Business Income.Residential or commercial property – Both residential and commercial rentals are treated as income from house property.Ownership is essential – The taxpayer must own the property.

Section 24 of the Income Tax Act allows for deductions against the head “Income form House Property”. Taxpayers having a self-occupied property are allowed a deduction of up to Rs. 2 lakh against home loan interest repayment under old tax regime only. Taxpayers with a let-out property are allowed various deductions such as a 30% standard deduction, deduction for municipal taxes and deduction on interest paid on home loans against the rental income from such property. Key HighlightsEntire interest paid can be claimed as a deduction in case of a property let out on rent against the rental income of such property.Interest deduction for self occupied property is not available under the new tax regime.Loss under “Income from House Property” can be set-off against other income sources up to Rs. 2 lakh under the old tax regime.

Buying a house property is one of the biggest financial commitments in one's life and the Income Tax Act provides taxpayers with a meaningful way to reduce that burden every year. Between Section 80C and Section 24(b), a homeowner under the old tax regime can reduce their taxable income by up to Rs. 3.5 lakh every year. But the actual deduction that can be claimed depends on whether the property is self-occupied or let-out, the tax regime opted for, and if the loan is an individual or a joint loan. Most of the benefits are not available under the new tax regime but with one important exception.Though the  Income Tax Act 2025 takes effect from 01st April, the provisions of 1961 act applies for AY 2026-27, as it pertains to income earned up to 31st March, 2026. Home Loan Tax Benefits - Key HighlightsThe maximum limits for deductions available against interest and principal paid during the financial year are presented in a table below: DeductionComponentMaximum LimitTax RegimeSection 80CPrincipalRs. 1.5 lakhOld Tax RegimeSection 24(b)InterestSelf-occupied property: Rs.

Dearness Allowance (DA) is a salary component paid to employees of public sector undertakings to offset the impact of inflation and rising living costs. Calculated as a percentage of the basic salary, DA is revised twice a year based on the Consumer Price Index (CPI). It is fully taxable and varies depending on factors like basic pay and inflation rates.Dearness Allowance HikeThe Dearness allowance has been increased to 60% from the existing limit of 58%. This DA hike will take effect from 1st January, 2026.What is Dearness Allowance?The government pays Dearness Allowance to its employees and pensioners as a cost of living adjustment to offset the impact of inflation. The effective salary of government employees requires constant enhancement to help them cope with increasing prices.Dearness allowance is calculated as a percentage of basic salary.

There are various exemptions available on long term capital gains on sale of land such as section 54F, 54EC and 54B. On satisfaction of conditions prescribed, exemptions can be claimed under the respective sections. However, short term capital gains are not eligible for the aforesaid exemption.Key HighlightsSome of the tax saving options for land sale are:Capital gain exemption under section 54F - investment in a residential property.Capital gain exemption under section 54EC - investment in specified bonds (NHAI, RECH, PFCL, IRFCL).Capital gain exemption under section 54B - investment in urban agricultural land.How to Save Tax on the Sale of Land?Profits arising from the sale of immovable property, such as a plot of land, building, or both, are taxable in the hands of taxpayers under the head "Capital Gain" of the Income Tax Act. It is classified as short term or long term capital gain, depending on the holding period.However, taxpayers can save tax on long term capital gain by claiming exemption under sections 54F, 54EC and section 54B of the Income Tax Act. These sections provide capital gain exemptions on reinvesting gains in specified assets and bonds, that help taxpayers legally save on tax arising from such transactions. The following are the tax saving strategies to avoid high capital gains taxation on property sales.1. Claim Transfer Expenses Expenses incurred solely for the purpose of transfer can be claimed as a deduction in calculation of capital gains tax.For example, you can claim deductions on stamp duty charges, brokerage, legal fees etc.

A new buzzword in the world of security investment is IPO. Initial public offer or popularly called IPO, is the process whereby the shares of a private limited company is sold in the market, open to public investors for the first time. When the shares are sold for the first time in the market, it is termed as the primary market. Listing gains from IPO are taxed at 20% in case of Short-Term Capital Gains and 12.5% in case of Long-Term Capital Gains. In this article, we will understand the tax implications on listing gains from an IPO.How IPOs Are Taxed - Key ConsiderationsThe capital gain implications of an IPO are similar to those of the capital gain taxation of shares, which varies according to the period of holding and listing status.Key points to be considered for the transfer of shares acquired in case of an IPO:Period of holding: Capital gain implications vary accordingly, so does the exemption availability.Security type: There can be IPOs for equity shares or debt securities.

Due to India's large population, the demand for real estate consistently remains high and often exceeds supply. This imbalance, along with the growing aspiration to own property drives up real estate prices over time. Owing to which sellers typically realize substantial gains, which are generally subject to taxation. What Is Capital Gain?The income tax law has broadly classified incomes into 5 different categories for taxation purposes. One of the categories is ‘Capital Gains’.Capital Gain is the profit received on the sale of any capital asset, like shares, bonds, jewellery, land or building by the seller. So, any gain on the sale of these capital assets attracts a capital gain tax in the hands of the seller.Sale consideration reduced by the cost of acquisition (indexed cost of acquisition for land or building held for more than 24 months) is taxable as a capital gain.Let’s discuss about the sale of capital assets like land or buildings here:When capital assets like land or building are sold, the capital gain can be calculated as follows:Capital gain =  Sale consideration- cost of acquisitionIf the land or building has been held for more than two years, the cost of acquisition is also adjusted for indexation, which takes account of inflation.

The taxation of debt mutual funds depends primarily on the date of purchase and holding period. For investments made on or after 1 April 2023, all gains are treated as short-term capital gains and taxed at the investor’s slab rate, regardless of how long they are held. However, for investments made before 1 April 2023, gains are taxed as long-term capital gains at 12.5% if held for more than 2 years, and as short-term capital gains at slab rates if held for 2 years or less.Though the Income Tax Act 2025 takes effect from 01st April 2026,  the provisions of the 1961 act applies for AY-26-27, as it pertains to income earned up to 31st March, 2026. Debt Mutual Funds Taxation - OverviewPurchase date is crucial: Tax rules differ before and after 1 April 2023Post 1 April 2023: All gains taxed as STCG at slab rates, regardless of holding periodPre 1 April 2023 (> 2 years): Taxed as LTCG at 12.5% (no indexation)Pre 1 April 2023 (≤ 2 years): Taxed as STCG at slab ratesNo indexation benefit: Not available for debt mutual fundsWhat are Debt Mutual Funds?Debt mutual funds are investment funds that invest mainly in fixed-income instruments like bonds, treasury bills, commercial papers, and debentures. In simple terms, the debt mutual fund meaning refers to funds that generate returns through interest income, offering relatively stable and lower risk returns compared to equity funds, making them suitable for conservative investors.Taxation Of Debt Mutual Funds After 1 April 2023The Budget 2023 made substantial changes as to taxation treatment for debt mutual funds effective 1st April 2023. Any gains on the transfer, redemption or maturity of units, purchased on or after 1st April 2023, are deemed short-term capital gains, regardless of the hold period, and are taxed at the applicable slab rates to the investor, with indexation benefits no longer applicable as such funds won't be seen as long-term capital assets.However, in the case of investment made prior 1st April 2023, the previous norms will continue to apply; in this case, the units must be held for more than 24 months in which it would be taxed as long-term capital gains at 12.5% without indexation benefits, or 24 months or less in which it would be taxed as short-term capital gains at the applicable slab rate.This can be summarized as follows:Purchase DateTax ImplicationBefore 1st April 2023LTCG at 12.5% after holding for more than 2 years.

Section 54 of the Income Tax Act, allows taxpayers to claim an exemption from Long-term Capital Gains arising from sale of residential house property, when such gains are reinvested in another residential property. The taxpayer must purchase a new residential house within 2 years or construct a new house within 3 years from date of sale. However, the maximum allowed exemption limit is capped at Rs. 10 Crore. Overview of Section 54 ExemptionAspectDetailsWho can claimIndividuals and HUFs onlyCapital gains typeLong-term capital gains from sale of residential house propertyExemption limitRs. 10 CroreTax regimeAvailable under both old and new tax regimesWhat is Section 54?Section 54 provides an exemption from long-term capital gains tax when an individual sells a house and purchases another house using the capital gains.

Section 10 of the Income Tax Act lists incomes that are fully or partially exempt from tax in India such as HRA, LTA and more. These Section 10 exemptions include specific incomes that are not included in your total taxable income, subject to prescribed conditions. The section contains multiple sub-sections covering exemptions such as allowances, agricultural income, gratuity, and other specified incomes.Popular Section 10 ExemptionsHouse Rent Allowance (HRA) Leave Travel AllowanceAgricultural IncomeInterest on provident fund (on satisfaction of conditions)Retirement settlement amount such as gratuity, leave encashment, pension, etc. (on satisfaction of conditions)What are Section 10 Exemptions of the Income Tax Act?While calculating the tax liability of an individual, there are certain incomes which is exempt and do not form a part of the total income. Section 10 includes all those exemptions that a taxpayer can claim while paying income tax. From an employee's perspective, the exemptions available under the act can be classified as exempt allowances, and other exempt income.