## Income from House Property — Charging Section [Section 22]
### The charge
> The annual value of property consisting of buildings or land appurtenant thereto, owned by the assessee, is chargeable to tax under the head 'Income from House Property' — provided the property is not used by the owner for his own business/profession.
### Exceptions (taxed under PGBP, not House Property)
- Business use: If the assessee uses the property (or part of it) for his own business/profession, that portion is excluded from Section 22.
- Business of renting: If the assessee's primary business is letting out commercial properties, that income is charged under business income.
### The three conditions for chargeability
1. Property must be a building or land appurtenant thereto
- Buildings: residential houses, factories, offices, shops, godowns, other commercial buildings.
- Land appurtenant: gardens, parking garages, etc., connected with the building.
- ⚠️ Income from letting out vacant land → taxed under Other Sources or PGBP.
- ⚠️ Rent from an under-construction property → taxable under Income from Other Sources.
2. The assessee must be the owner
- Registration of the sale deed is NOT mandatory for ownership.
- Ownership includes freehold, leasehold, and deemed ownership u/s 27.
- The owner of the building need not own the land beneath it.
- Ownership must exist during the previous year (not necessarily the assessment year).
- If ownership is disputed in court, the Income Tax Department decides chargeability until the court rules.
- Unrealised rent / arrears u/s 25A are taxable irrespective of ownership status.
3. Property usage
- Can be residential or commercial.
- Exclusion: if the owner uses it for his own taxable business/profession, it is not under this head.
4. Property held as stock-in-trade
- Even if the property is stock-in-trade (inventory for sale), its annual value is still charged under Income from House Property (subject to the specific relaxation period for unsold stock).