Evolution of Annual Value Determination of Property Income: Section 23 of Income Tax Act, 1961 and Clause 21 of Income Tax Bill, 2025

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..... erty under the existing Income Tax Act, 1961 (Section 23) and the proposed Income Tax Bill, 2025 (Clause 21). Both provisions deal with the computation of annual value of properties for income tax purposes, but there are several notable changes in the new bill. Structural Changes and Simplification The new Clause 21 presents a more streamlined and simplified structure compared to the existing Se .....

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..... tion [21(3)] and expands scope to include service taxes 4. Self-Occupied Properties Existing Act: Complex provisions u/s 23(2) and 23(3) New Bill: Simplified under Clause 21(6) and 21(7), maintaining the two-house limit but with clearer language 5. Stock-in-Trade Properties Existing Act: Section 23(5) allows nil value for one year New Bill: Extends the nil value period to two years under .....

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