Income from House Property: Old vs New Section Mapping Explained (Income-tax Act, 2025)

Introduction

Income from House Property is one of the most important heads of income under the Income-tax law, especially for individuals owning residential or commercial properties. With the introduction of the Income-tax Act, 2025, the government has restructured and renumbered provisions of the old Income-tax Act, 1961 to make the law simpler and more logical.

This article explains Income from House Property with a clear comparison of old sections (1961 Act) and new sections (2025 Act).

What is Income from House Property?

Income from House Property refers to income arising from buildings or land appurtenant thereto, of which the taxpayer is the owner. The property may be:

Self-occupied

Let-out

Deemed to be let-out

Ownership, not receipt of rent, is the basis of taxation under this head.

Section-wise Mapping: Old Act vs New Act
Particulars Income-tax Act, 1961 Income-tax Act, 2025
Chargeability of House Property Section 22 Re-numbered section
Annual Value Section 23 Simplified corresponding section
Deductions from House Property Section 24 Re-structured provision
Unrealised Rent Rule-based Integrated provisions
Deemed Ownership Section 27 Mapped section

(Only section numbers have changed; taxation principles remain the same.)

Types of House Property under Income-tax Act, 2025
1. Self-Occupied Property

Annual value taken as Nil

Interest on housing loan allowed as deduction (subject to conditions)

2. Let-Out Property

Rental income taxable

Municipal taxes deductible

Standard deduction available

3. Deemed Let-Out Property

Applicable where more than one house is owned

Not actually rented but deemed to generate income

Deductions Available from House Property

Under the Income-tax Act, 2025, deductions broadly remain similar:

Standard Deduction (30% of Net Annual Value)

Interest on Borrowed Capital

Municipal taxes actually paid

The Act presents these deductions in a clearer and consolidated manner.

What Has Changed in the Income-tax Act, 2025?

Simplified language and structure

Logical grouping of provisions

Easy identification of deductions

Reduced cross-referencing

Importantly, no major substantive change has been made to the taxation of house property income.

Impact on Property Owners

For taxpayers owning house property:

Compliance remains familiar

Easier understanding of law

Better clarity on deductions and annual value

Smooth transition from old to new Act

Tax planning strategies for house property continue largely unchanged.

Conclusion

Income from House Property under the Income-tax Act, 2025 follows the same fundamental principles as the 1961 Act but with better clarity and section-wise organisation. Taxpayers and professionals should focus on learning the new section references to avoid confusion in future filings and assessments.

Written by:
Abhishek Gupta
Chartered Accountant
Office No. 19, Sagar Building, 4th Floor, Plot-327,
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