Section 20
Section 20: income from house property
Section 20 is the charging section for the "Income from house property" head. It taxes the annual value of buildings (and the land attached to them) that the assessee owns, while carving out any portion the owner actually uses for their own business or profession.
What Section 20 says
"(1) The annual value of property consisting of any buildings or lands appurtenant thereto, owned by the assessee shall be chargeable to income-tax under the head 'Income from house property'."
"(2) The provisions of sub-section (1) shall not apply to such portions of the property, as the assessee may occupy for his business or profession, the profits of which are chargeable to income-tax."
What this means in practice
Tax under this head is charged on the property's "annual value" (as determined under section 21), not on the actual rent alone - ownership of the building, not merely receiving rent, is the trigger for this head.
If the owner occupies part of the property for their own business or profession (and the profits of that business/profession are separately taxed), that portion is excluded from the house property head - it isn't taxed twice.
Frequently asked questions
Is house property income based on actual rent received or on 'annual value'?
It is based on the "annual value" of the property as determined under section 21, which may or may not equal the actual rent received - see section 21 for how it's computed.
If I use part of my building for my own shop, is that portion taxed under house property?
No - Section 20(2) excludes any portion the owner occupies for their own business or profession whose profits are separately chargeable to tax.
Related sections
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Talk to our tax team about this sectionLast updated 9 September 2026