## Section 22 — Charging Section for House Property
Annual value of any property comprising buildings and lands appurtenant thereto, of which the assessee is the owner, is chargeable under the head 'Income from House Property'.
### Two Conditions for Taxability under HP
1. There must be a House Property — any building (residential/commercial) and the land attached (garden, garage, etc.).
2. The assessee must be the owner of such property.
### Head of Income Decision Matrix
| Situation | Head |
|---|---|
| Rental income from residential building | House Property |
| Rental income from commercial building (office/shop/godown) | House Property |
| Rental income from vacant land (no building) | IFOS |
| Assessee's business = renting residential HP | House Property |
| Assessee's business = renting commercial HP | PGBP |
| HP held as stock-in-trade by real-estate business — letout | House Property |
| Same — not letout, within 2 years from end of FY of completion | Not taxable |
| Same — not letout, after 2 years (deemed letout) | House Property |
| Composite rent (HP + amenities) — separable → HP portion | House Property |
| Same — separable — amenities portion | IFOS |
| Composite rent — inseparable → whole | IFOS |
| HP used in assessee's own business | Not taxable under HP (no notional income) |
### Types of House Property
```
House Property
/ \
Letout Self-Occupied / Unoccupied
(Taxable) (Used for own residence or not let)
/ \
Max 2 properties Remaining (Deemed Letout)
→ Exempt → Taxable
```
### Special Notes
1. If house is letout for part of year and self-occupied for part of year, it is treated as Letout Property (no SOP benefit).
2. The SOP concept applies only to Individual & HUF — not to companies, firms, etc.
3. If assessee has more than 2 self-occupied properties, he may choose any 2 as SOP (exempt); the rest are deemed letout (taxable).