Business Income or Income from House Property

This query is : Resolved

HIMANSHU (Querist)
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13 August 2025 Assessee is the owner of commercial property in a commercial building. The said commercial property of the assessee is entirely given on leave and licensee basis for commercial use only. The said commercial property is given on rent in between April 2024 to March 2025. This if the first year of assessment after the assessee has given the said commercial property on leave and license basis as the building in which the said commercial property is located received the occupation certificate from Municipal corporation only in May 2024. Further the assessee is due to file his return or or before 15.9.25 had not filed the said return of income

Query : 1) Under the new amendment will section 28 be applicable.

2) Should the assessee present the income generated under the head business income or income from house property

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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13 August 2025 ✅ Conclusion on Query 1:
No, Section 28 will not automatically apply merely because the property is commercial.
Section 28 would apply only if the activity amounts to business, e.g., hotel, service apartments, co-working spaces, or a leasing business with commercial intent.

✅ Conclusion on Query 2:
The income should be shown under "Income from House Property", not business income.
Deduction u/s 24(a) (30% standard deduction) and interest on borrowed capital (if any) can be claimed.
No GST implication, unless services or commercial exploitation are involved.

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