Rental Income from House Property: Owner Definition Under Income Tax Bill 2025 and Income Tax Act 1961 Clause 25 Interpretation - Income Tax Bill, 2025

Clause 25 Interpretation Income Tax Bill, 2025 1. Introduction This analysis examines the interpretation of owner in relation to house property under Clause 25 of the Income Tax Bill, 2025 , comparing it with Section 27 of the Income-tax Act, 1961 . The provisions are crucial for determining ownership for taxation of income from house property. 2. Objective and Purpose Both provisions aim to: Define who qualifies as an owner for taxation purposes Prevent tax avoidance through certain property transfers Establish deemed ownership in specific circumstances Provide clarity on property ownership in various arrangements 3. Detailed Comparative Analysis 3.1 Structural Changes Reference Range: Bill 2025 : Applies to sections 20 to 24 Act 1961 : Applies to sections 22 to 26 3.2 Transfer to Spouse and Minor Child Bill 2025 [ Clause 25(a) ]: Uses transfers without adequate consideration Specifically mentions except under an agreement to live apart Includes exception for married daughter Act 1961 [ Section 27(i) ]: Uses transfers otherwise than for adequate consideration Similar provisions but different phrasing Identical treatment of married daughter exception 3.3 Impartible Estate Bill 2025 [ Clause 25(b) ]: More concise language Removes explicit mention of individual owner Act 1961 [ Section 27(ii) ]: More detailed language Specifically mentions individual owner 3.4 Cooperative Society Members Bill 2025 [ Clause 25(c) ]: Streamlined language Maintains same substantial rights Act 1961 [ Section 27(iii) ]: More verbose construction Identical in substance 3.5 Rights in Part Performance Bill 2025 [ Clause 25(d) ]: Direct reference to Transfer of Property Act Clearer language Act 1961 [ Section 27(iiia) ]: Similar provision More complex construction 3.6 Rights Through Other Transactions Bill 2025 [ Clause 25(e) ]: Expanded scope Clearer categorization of rights Specific mention of 12-year lease term Act 1961 [ Section 27(iiib) ]: Limited to transactions u/s 269UA(f) Less detailed 3.7 Omitted Provisions Bill 2025 : No provisions regarding annual charge or capital charge No mention of service taxes Act 1961 : Previously contained definitions of annual charge and capital charge (omitted) Includes provision about service taxes [ Section 27(vi) ] 4. Practical Implications Clearer language in the 2025 Bill may reduce interpretation disputes Expanded scope of certain provisions may affect more taxpayers Removal of certain definitions suggests simplified approach More specific lease terms provide better clarity 5. Conclusion The 2025 Bill represents a modernization of ownership definitions with: Clearer language Expanded scope in certain areas Removal of outdated concepts More specific criteria for certain arrangements Full Text : Clause 25 Interpretation