I own a property that I have not rented out. It is currently unoccupied. I don't make any money from this property? Can such property generate taxable income?

Yes, even if your property is vacant and you have not earned any rent, it is still considered as a property that can generate taxable income under the head "Income from House Property".

As per the Income Tax Act, a notional rent is calculated based on the property's annual value (Fair value concept), which is the amount that the property could reasonably be expected to earn as rent. This notional rent is treated as taxable income, even if the property remains vacant for the entire year.

However, certain deductions are allowed from this notional rent, such as a standard deduction of 30% of the annual value, municipal taxes paid during the year, and interest paid on a property loan taken for the property's construction or purchase. After these deductions, the taxable income from the vacant property is calculated.

It is important to note that if you own up to two residential properties that are vacant throughout the year, and you don't earn any income from it, then you can claim such Property as 'Self Occupied', with Nil Rental Income.

Also, in the case of property occupied by the owner for the purpose of his business, you can claim Nil rental Income.​​​​