SHORT ANSWER:
Rental income is taxed under the Income Tax Act in India.
DETAILS:
- Rental income is considered as "Income from House Property" under Section 22 of the Income Tax Act.
- The annual value of the property is calculated, and a standard deduction of 30% is allowed for repairs and maintenance.
- The net income is then taxed according to the applicable income tax slab rates.
PUNISHMENT / IMPLICATIONS (if applicable):
- Failure to report rental income can lead to penalties under Section 271(1)(c) for concealment of income.
SOURCE:
- Income Tax Act, 1961
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