LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Commercial renting of building i t computation

Roshan (-) (109 Points)

02 May 2015

An assesse has buildings which are rented to commercial institutions such as banks and other companies. Is the rent recieved taxable under Income from House Property or can it be shown as Profit after reducing depreciation and other maintenance expenses under Profits and Gains from Business and Profession head?

Reply
Follow
Share

2 Replies

Chaitali (CA) (64 Points)
Replied 02 May 2015

Originally posted by : Roshan

Rental income in the hands of owner is charged to tax under the head “Income from house property”. and not as PGBP.

House property consists of any building or land appurtenant thereto of which the assessee is the owner. The appurtenant lands may be in the form of a courtyard or compound forming part of the building. But such land is to be distinguished from an open plot of land, which is not charged under this head but under the head „Income from Other sources‟ or „Business Income‟, as the case may be. Besides, „house property‟ includes flats, shops, office space, factory sheds, agricultural land and farm houses. Further, house property includes all type of house properties, i.e., residential houses, godowns, cinema building, workshop building, hotel building, etc.

CA HAYEDAR SHAIKH (Practice ) (622 Points)
Replied 02 May 2015

Dear Roshan,

Income from house property in general is taxable under the head “Income from House property” in the hands of the owner. This applies to both residential as well as commercial property.

1 Like