Generate Income from House Property

Income from house property
It’s easy to get confused between active and passive income from house property. They’re both legit ways to earn—but the way they work (and how they affect your life and taxes) is very different.

Active Income from Property Explained

Think of active income like a side hustle. You’re earning money, but you’re also putting in serious work.

Let’s say you own a couple of flats in a tourist hotspot like Goa. You decide to rent them out on platforms like mookaa.in. Sounds good, right? But here’s what you’re actually doing:

Responding to booking inquiries
Managing check-ins and check-outs
Cleaning and maintenance between guests
Dealing with complaints or last-minute cancellations
Constantly optimizing listings and pricing.
llustration Example:
Meera inherited a 3BHK in Pune and leased it out to an MNC executive family. She has a property manager who takes care of maintenance. She gets ₹40,000/month with zero effort. That’s passive income at its best.

Legal Framework and Tax Treatment in India

When it comes to earning from house property, taxes are unavoidable—but not necessarily painful. India’s Income Tax Act has clearly defined rules on how such income is taxed.
Story of Active Management – The Hands-On Landlord

Meet Raj, a tech professional in Bengaluru who decided to invest in real estate to diversify his income. He purchased a 2BHK apartment near a tech park, aiming to rent it out to working professionals. Raj chose to manage the property himself, handling tenant inquiries, maintenance issues, and rent collection.