Income from property Section 15(6)(7)

Income from property Section 15(6)(7): Presently, option is available to tax payer that they can opt to pay tax under presumptive tax regime at the rates specified under Division VIA of Part 1 of first schedule or on net taxable income basis by applying rates specified under division 1, Part 1, first schedule.

Now finance bill proposed to omit sub-section 6 of section 15 which result in withdrawals of Presumptive tax regime for income from property. Similarly, Division VIA of part 1 of first schedule is also proposed to be omitted.

Now income from property shall be included in total income of individual and AOP and shall be taxed under Division 1 Part 1 of the First Schedule.

Furthermore, presently minimum rent chargeable to tax under the head “Income from Property” is Rs. 200,000 for individual and AOP, however, after the proposed omission of subsection 6 and 7, the said limit shall no more be applicable. Now minimum limit applicable to total taxable income from all heads shall be Rs. 400,000 under Division 1 Part 1 of First Schedule of ITO, 2001.

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