Income from House Property: Section 22 of Income Tax Act, 1961 Versus Clause 20 of Income Tax Bill, 2025

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..... ork. This analysis examines the proposed changes in Clause 20 of the Income Tax Bill, 2025, comparing it with the existing Section 22 of the Income Tax Act, 1961, to understand the evolution and implications of this important provision. 2. Legislative Background and Context Section 22 of the Income Tax Act, 1961, established the framework for taxing income derived from house property. The propos .....

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..... anguage while maintaining the same legal effect. 3.3 Business/Professional Use Exception Current Provision: The exception is embedded within the main charging section, reading "other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to income-tax" Proposed Provision: The exception is now .....

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..... r taxpayers * Reduced scope for litigation due to improved clarity 5.2 Compliance Considerations * More straightforward application of provisions * Better understanding of exceptions * Clearer segregation of business and residential property portions 6. Conclusion The proposed Clause 20 represents a structural improvement over the existing Section 22, while maintaining the fundamental p .....

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