Income Tax Act, 2025
Section 10: The words “annual charge or” omitted by Act 14 of 2001, s. 16 (w.e.f. 12002).
10. The words “annual charge or” omitted by Act 14 of 2001, s. 16 (w.e.f. 12002).
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1[25A. Special provision for arrears of rent and unrealised rent received subsequently.—(1) The
amount of arrears of rent received from a tenant or the unrealised rent realised subsequently from a
tenant, as the case may be, by an assessee shall be deemed to be the income from house property in
respect of the financial year in which such rent is received or realised, and shall be included in the total
income of the assessee under the head “Income from house property”, whether the assessee is the owner
of the property or not in that financial year.
(2) A sum equal to thirty per cent. of the arrears of rent or the unrealised rent referred to in
sub-section (1) shall be allowed as deduction.]
26. Property owned by co-owners.—Where property consisting of buildings or buildings and lands
appurtenant thereto is owned by two or more persons and their respective shares are definite and
ascertainable, such persons shall not in respect of such property be assessed as an association of persons,
but the share of each such person in the income from the property as computed in accordance with
sections 22 to 25 shall be included in his total income.
2[Explanation.—For the purposes of this section, in applying the provisions of sub-section (2)
of section 23 for computing the share of each such person as is referred to in this section, such share shall
be computed, as if each such person is individually entitled to the relief provided in that sub-section.
27. “Owner of house property”, “annual charge”, etc., defined.—For the purposes of
sections 22 to 26—
(i) an individual who transfers otherwise than for adequate consideration any house property to
his or her spouse, not being a transfer in connection with an agreement to live apart, or to a minor
child not being a married daughter, shall be deemed to be the owner of the house property so
transferred;
(ii) the holder of an impartible estate shall be deemed to be the individual owner of all the
properties comprised in the estate ;
3[(iii) a member of a co-operative society, company or other association of persons to whom a
building or part thereof is allotted or leased under a house building scheme of the society, company or
association, as the case may be, shall be deemed to be the owner of that building or part thereof;
(iiia) a person who is allowed to take or retain possession of any building or part thereof in part
performance of a contract of the nature referred to in section 53A of the Transfer of Property
Act, 1882 (4 of 1882), shall be deemed to be the owner of that building or part thereof;
(iiib) a person who acquires any rights (excluding any rights by way of a lease from month to
month or for a period not exceeding one year) in or with respect to any building or part thereof, by
virtue of any such transaction as is referred to in clause (f) of section 269 UA, shall be deemed to be
the owner of that building or part thereof;]
4* * * * *
(vi) taxes levied by a local authority in respect of any property shall be deemed to include service
taxes levied by the local authority in respect of the property.
28. Profits and gains of business or profession.—The following income shall be chargeable to
income-tax under the head “Profits and gains of business or profession”,—
(i) the profits and gains of any business or profession which was carried on by the assessee at any
time during the previous year;
(ii) any compensation or other payment due to or received by,—
(a) any person, by whatever name called, managing the whole or substantially the whole of
the affairs of an Indian company, at or in connection with the termination of his management or
the modification of the terms and conditions relating thereto;
The
amount of arrears of rent received from a tenant or the unrealised rent realised subsequently from a
tenant, as the case may be, by an assessee shall be deemed to be the income from house property in
respect of the financial year in which such rent is received or realised, and shall be included in the total
income of the assessee under the head “Income from house property”, whether the assessee is the owner
of the property or not in that financial year.
A sum equal to thirty per cent. of the arrears of rent or the unrealised rent referred to in
sub-section
shall be allowed as deduction.]
26. Property owned by co-owners.—Where property consisting of buildings or buildings and lands
appurtenant thereto is owned by two or more persons and their respective shares are definite and
ascertainable, such persons shall not in respect of such property be assessed as an association of persons,
but the share of each such person in the income from the property as computed in accordance with
sections 22 to 25 shall be included in his total income.
2[Explanation.—For the purposes of this section, in applying the provisions of sub-section
of section 23 for computing the share of each such person as is referred to in this section, such share shall
be computed, as if each such person is individually entitled to the relief provided in that sub-section.
27. “Owner of house property”, “annual charge”, etc., defined.—For the purposes of
sections 22 to 26—
an individual who transfers otherwise than for adequate consideration any house property to
his or her spouse, not being a transfer in connection with an agreement to live apart, or to a minor
child not being a married daughter, shall be deemed to be the owner of the house property so
transferred;
the holder of an impartible estate shall be deemed to be the individual owner of all the
properties comprised in the estate ;
3[
a member of a co-operative society, company or other association of persons to whom a
building or part thereof is allotted or leased under a house building scheme of the society, company or
association, as the case may be, shall be deemed to be the owner of that building or part thereof;
a person who is allowed to take or retain possession of any building or part thereof in part
performance of a contract of the nature referred to in section 53A of the Transfer of Property
Act, 1882 (4 of 1882), shall be deemed to be the owner of that building or part thereof;
a person who acquires any rights (excluding any rights by way of a lease from month to
month or for a period not exceeding one year) in or with respect to any building or part thereof, by
virtue of any such transaction as is referred to in clause
of section 269 UA, shall be deemed to be
the owner of that building or part thereof;]
4* * * * *
taxes levied by a local authority in respect of any property shall be deemed to include service
taxes levied by the local authority in respect of the property.
28. Profits and gains of business or profession.—The following income shall be chargeable to
income-tax under the head “Profits and gains of business or profession”,—
the profits and gains of any business or profession which was carried on by the assessee at any
time during the previous year;
any compensation or other payment due to or received by,—
any person, by whatever name called, managing the whole or substantially the whole of
the affairs of an Indian company, at or in connection with the termination of his management or
the modification of the terms and conditions relating thereto;