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House Property

03 January 2018

if one house property is let out to the company by the another company then income will charge in which head ?

company is doing letting out business
or not ?

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5 Replies

vamshi (student) (59 Points)
Replied 03 January 2018

Either HP or PGBP(nature of operations is important )..if its main activities are into letting out then it would be considered as Business income in any other case HP

sourav kumar (4 Points)
Replied 03 January 2018

PGBP BECOZ COMPANY IS AN ARTIFICIAL PERSON
AND IT CAN'T DO OTHER PRATICES OTHER THAN PGBP EXCEPT IN CERTAIN CASES

Deepak Sharma (manager) (276 Points)
Replied 03 January 2018

PGBP in case if it is its main business.

1 Like

Rishi Mehta (Ur friend ) (1533 Points)
Replied 03 January 2018

Rent in question to be treated as business income only when company has as it's object of earning rental income by letting of property as per Memorandum Of Association of the company.
In the absence of such an object in MOA , rental income will be taxable under the head of house property.

Srishti Agrawal (Practice, Teacher) (172 Points)
Replied 03 January 2018

Income of letting out of house property by a company is chargeable under PGBP the below ruling by supreme court -

In the case of M/s Chennai Properties & Investments Limited, held that if letting out of properties was the business of the taxpayer, then its income would be chargeable to tax under the head ‘profits and gains of business or profession’ as opposed to ‘income from house property’.