As per Income Tax Act which of the following property income is not exempted from tax ?

The correct answer is - Income from letout of house property

Key Points

• Income from letout of house property
  • Under the Income Tax Act, 1961, income from a property that is let out is taxable under the head "Income from House Property."
  • This taxable income is calculated by deducting certain allowances like the standard deduction (30%) and interest on borrowed capital from the gross annual rental value.
  • Unlike other types of property-related income listed in the options, income from letout of house property is not exempted.

Additional Information

• Exempted Property Income as per Income Tax Act
  • Income from Farm House: Income derived from a farm house used for agricultural purposes is exempt from tax under Section 10(1).
  • Property income of a local authority: Income earned by local authorities from property is exempt from tax under Section 10(20).
  • Property income of a political party: Political parties are exempted from paying tax on their property income under Section 13A, provided they meet the specified conditions.
• Taxable Property Income
  • Income from letout of house property: As mentioned earlier, this income is taxable after deductions, and it is included in the individual's total taxable income for the financial year.
  • It is essential to report this income accurately to avoid penalties under the Income Tax Act.