Section 23 → Section 26
Determination of Annual Value
Quick Answer
Section 23 of the Income Tax Act, 1961 (Determination of Annual Value) corresponds to Section 26 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 23
Provision Summary
Rules for calculating Gross Annual Value (GAV) based on municipal value, fair rent, standard rent, or actual rent received.
Sec 26
Provision Summary
Retained. The concept of 'Deemed to be let out' for holding more than two self-occupied properties is strictly enforced via PAN tracking.
Key Changes & Highlights
- Municipal value data linked directly via local government APIs for automated GAV calculation in ITR.
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Frequently Asked Questions
What does Section 23 of the Income Tax Act 1961 deal with?
Section 23 (Determination of Annual Value) Rules for calculating Gross Annual Value (GAV) based on municipal value, fair rent, standard rent, or actual rent received.
What is the new section number for Section 23 under the Direct Tax Code 2025?
Section 23 of the ITA 1961 maps to Section 26 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 23 under the new tax code?
Section 23 is marked as "Retained" with status "Active". Impact: Medium - Automates property tax calculations.
What are the key changes to Section 23 under DTC 2025?
Municipal value data linked directly via local government APIs for automated GAV calculation in ITR.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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