This year in the Union budget, Finance Minister Nirmala Sitharaman has suggested income derived from renting a house or a part of the house should now come under income from house property, when submitting income tax.
As per finance minister, some of the taxpayers are registering their rent income under incorrect tax head, which is ‘Profits and gains of business or profession.’ Instead of ‘Income from house property.’
As a result, taxpayers are displaying house property income in an incorrect head. Thus, they are decreasing their tax liability.
Therefore, she asked the central government to make changes in section 28, which clears, that income rental via taxpayer’s property will not incur charges under ‘Profits and gains of business or profession.’
Hence, this new law is likely to hike tax liability of such individuals. As per Sitharaman, this amendment will be implemented from coming financial year.
Coming to TDS (tax deducted at source) over sales of immovable property, She revealed, ‘where there is more than one transferor or transferee in respect of an immovable property, then such consideration for transfer of the immovable property shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property.’
Meanwhile Finance Minister Nirmala Sitharaman presented the budget for 7th time in 2024. Thus, breaking the record of veteran finance minister Morarji Desai. Breaking the record of 6.
