ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Based on the Income Tax Act, any rent received in exchange for letting out a property (a building or a land adjoining it) by the authorised property owner is called the rental income. The tax on rental income is calculated on the annual rental value received by the property owner.

Detailed explanation-2: -As per the Income Tax Act, any income received as rent from leasing or renting out a building or a house is taxable under the head ‘Income from House Property’. It also includes any amount paid in advance as the security deposit.

Detailed explanation-3: -File ITR-1 with rental income. An individual will have to input personal information like first name, gender, date of birth, and PAN number to begin the ITR filing process. Income details will have to be uploaded along with Form 16.

Detailed explanation-4: -Under the Income-tax Act, such income is to be taxed under the head “Income from House Property". 8 The provision of TDS will also apply on such rental income of Non-Resident. Therefore, the person paying the rent to the NR will withhold tax 30% in accordance with the Section 195 of the Income Tax Act.

Detailed explanation-5: -Standard rent is the rent determined under Rent Control Act. The property owner cannot charge a rent higher than the standard rent fixed under Rent Control Act. Net Annual Value (NAV) is the value calculated as Gross Annual Value minus Municipal taxes paid.