Property which is occupied throughout the year by the taxpayer for his residence is termed as a Self occupied Property, as per the Income Tax Act.
Any income generated from rent, from any flat, building or land appurtenant thereto are generally taxed under the head Income from house property.
While, any income generated from a vacant land is charged either under the head, Income from Business or Profession" or under the head "Income from other sources", depending upon its nature.
However, if the owner occupies the house property for the purposes of his own business or profession, no tax is to be paid under this head in respect of such property.
Cases where income assessed falls under the head "Income form house property."
i. Income from own building used partly for business and portions let out on rent.
ii. Rent from setting-up a market.
iii. Income form shops in Malls with limited rights is mall management and business center and this is income from business and profession.
iv. Annual value of a property is liable to be charged to income-tax even in a case where the property is mortgaged and no income is derived from it.
However, one need to deduct Municipal taxes paid during the year
b.) Cases where income assessed doesn‟t falls under the head "Income form house property."
i. Rent from vaults for storage of films.
ii. Rent from furnished accommodation.
iii. Warehousing charges received for storing goods in warehouse is assessable as business income.
iv. Income from letting out surplus portions of the non-factory building including godown.
In case where the property consists of a house or part of house which is in the occupation of the owner for the purposes of his own residence. Or when an individual cannot actually be occupied by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at other place in a building not belonging to him, the annual value of such house or part of house shall not be considered as NIL.
Source: Incometax Site