Budget 2024: FM’s Proposal Requires Residential House Rentals to Be Reported as House Property Income, Not PGBP

The 2024 Budget proposes a significant change in reporting rental income from residential properties. The Finance Ministry's proposal requires landlords to classify rental income from residential houses as "house property income" rather than "profits and gains from business or profession" (PGBP). This shift aims to streamline tax reporting and align with standard practices. Under the new rules, residential rental income will be taxed under the head "Income from House Property," impacting how deductions and exemptions are applied. This change could affect landlords' tax liabilities and compliance requirements.