TMI BlogInterpreting Sections 22, 23, and 24: Taxation of Notional Rental Income from House Property and Vacancy AllowanceX X X X Extracts X X X X X X X X Extracts X X X X ..... r review, revolves around the interpretation and application of Sections 22 , 23 , and 24 of the Income Tax Act, 1961 . These sections form the crux of the legal framework for taxing income from property ownership. The appellant's contention and the subsequent tribunal's decision in this case provide insightful perspectives into how these provisions are applied in real-life scenarios. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se Property : This section allows for certain deductions from the annual value calculated under Section 23 . These deductions include a standard deduction of 30% of the annual value and interest on borrowed capital. Case Analysis Identification of Incriminating Material : The tribunal identified the presence of incriminating material in the form of a balance sheet that showed ow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quisition of the property as its annual value. Deduction under Section 24 : The tribunal upheld the appellant's right to a standard deduction of 30% under Section 24(a) of the Act. This deduction is unqualified and was thus allowed on the estimated annual value. Rejection of Vacancy Allowance : The tribunal did not allow vacancy allowance as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ractitioners in understanding the complexities involved in computing income from house property, especially in scenarios where no actual rent is received, and the income has to be estimated based on notional values. The judicial interpretation and application of these sections provide valuable guidance for similar cases. Full Text : 2023 (11) TMI 822 - ITAT MUMBAI - FAQ - Freque ..... X X X X Extracts X X X X X X X X Extracts X X X X
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