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Rent from vacant land

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vijay mohan

182 Points Joined January 2018

Rent from vacant land will come under house property or from other sources

Replies (2)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9596 Points Joined December 2011

Rent earned from vacant land is considered as "Income from Other Sources" and not as "Income from House Property" under the Income Tax Act. Here's why: - "Income from House Property" applies to income earned from buildings or structures, like houses, flats, or commercial properties. - Vacant land, on the other hand, is not considered a "house property" as it does not have any buildings or structures. So, the rent earned from leasing out vacant land is taxed under "Income from Other Sources" (Section 56 of the Income Tax Act). However, if you construct a building or structure on the vacant land and rent it out, the income will then be taxed as "Income from House Property".

Rama chary Rachakonda

Master in Accounts & high court Advocate

9596 Points Joined December 2011

Rent earned from vacant land is considered as "Income from Other Sources" and not as "Income from House Property" under the Income Tax Act. Here's why: - "Income from House Property" applies to income earned from buildings or structures, like houses, flats, or commercial properties. - Vacant land, on the other hand, is not considered a "house property" as it does not have any buildings or structures. So, the rent earned from leasing out vacant land is taxed under "Income from Other Sources" (Section 56 of the Income Tax Act). However, if you construct a building or structure on the vacant land and rent it out, the income will then be taxed as "Income from House Property".

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