# House Property — Classification of All Rental & Property Income
The head under which rental/property income is taxed depends on what is rented, business intent, and the nature of arrangement. This is the master classification chart.
## 1. Rent from Commercial Buildings
| Scenario | Head |
|---|---|
| Assessee's business is renting of commercial buildings | PGBP |
| Assessee does NOT have such business | Income from House Property (HP) |
## 2. Rent from Residential Buildings
| Scenario | Head |
|---|---|
| Assessee has business of renting HP | HP |
| Assessee does not have business of renting HP | HP |
(Note: Residential letting is always taxed under HP — even where it is the business.)
## 3. Income from Vacant Land
| Scenario | Head |
|---|---|
| Assessee has business of dealing in land | PGBP |
| No such business | IFOS |
## 4. Houses kept as Stock-in-Trade (Builders / Developers)
| Period after end of FY of Completion Certificate | Treatment |
|---|---|
| Up to 2 years and property is not let out | Nil (notional rent not taxable) |
| Within 2 years but property is let out | HP Income (actual rent taxable) |
| After 2 years (whether let out or not) | HP Income (notional/actual rent taxable) |
## 5. Sub-letting of HP
| Scenario | Head |
|---|---|
| Tenant sub-lets the HP | IFOS (since tenant is not the owner) |
## 6. Composite Income (Building + Other Assets together, e.g. Furnished accommodation, hotel, factory building with P&M)
```
┌── Building & Other Assets SEPARABLE ──────────┐
│ Building rent → House Property │
│ Other Assets rent → PGBP or IFOS │
└───────────────────────────────────────────────┘
┌── Building & Other Assets NOT SEPARABLE ──────┐
│ Entire rent → PGBP or IFOS (as case may be) │
└───────────────────────────────────────────────┘
```
## Golden Rule for HP
Income is taxable under HP only if the assessee is the OWNER (legal/deemed). Otherwise, the income falls under PGBP or IFOS depending on facts.