Budget 2024: No more Reporting of income from letting out of house property under PGBP:

Budget 2024: No more Reporting of income from letting out of house property under PGBP The Act's Section 28 specifies the types of income under the heading "Profits and gains of business or profession (PGBP)" that are subject to income tax. Some taxpayers have been observed to declare rental income from renting out their home under the heading "Profits and gains of business or profession" rather than under the heading "Income from house property." Because they are reporting house property revenue under the incorrect income head, they are significantly lowering their tax liability. Given this, it is proposed to amend Section 28 of the Act to make it clear that any income received by the owner of a residential home from renting out all or part of the property will be charged under the heading "Income from house property" rather than "Profits and gains of business or profession." This amendment has reversed the Judgement of the Supreme Court in the matter of Chennai Properties & Investment Ltd. v. CIT which allowed the assessee to report income from letting out of house property under PGBP if the transaction of letting out or sub-letting of the property is a part of the business operations of the assessee.