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Knowledge Bank / Income-tax Act, 2025 / Chapter IV - COMPUTATION OF TOTAL INCOME

Section 25

Section 25: interpretation

Section 25 defines who is treated as the "owner" of a property for the purposes of the house property provisions (sections 20 to 24). It deliberately goes beyond the legal/registered title-holder to catch certain situations where someone else effectively enjoys ownership benefits.

This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.

Who is deemed to be the "owner"

For the purposes of sections 20 to 24, "owner" includes:

  • An individual who transfers property without adequate consideration to their spouse (except under an agreement to live apart) or to a minor child (other than a married daughter)
  • The holder of an impartible estate, deemed to be the individual owner of all properties comprised in the estate
  • A member of a co-operative society, company or other association of persons to whom a building (or part of it) is allotted or leased under a house-building scheme of that society/company/association
  • A person allowed to take or retain possession of a building (or part of it) in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882
  • A person who acquires certain rights in a building (other than a month-to-month or up-to-one-year lease) through sale, exchange, or a long lease (12 years or more, original or extendible), or through certain co-operative society/company membership-type transactions that have the effect of enabling enjoyment of the property

Frequently asked questions

If I give a house to my minor child without payment, who is taxed on its house property income?

Section 25(a) deems the transferor (the parent) to remain the "owner" for house property tax purposes in such a transfer without adequate consideration (with a specific exception for a married daughter).

Am I an 'owner' if I only have a long-term lease on a property, not the title?

Possibly - Section 25(e) treats a person who acquires rights through an original or extendible lease of 12 years or more (among other listed situations) as an owner for house property purposes.

Related sections

  • Section 20 - income from house property
  • Section 24 - property owned by co-owners

Want this applied to your actual filing, not just explained?

Talk to our tax team about this section

Last updated 9 September 2026

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