Business income or rental income

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swasti (Querist)
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31 October 2012 Can a company receiving rent on building claim such income as "Income from Business" inspite of "Income from House Property" and can claim deduction of salary expenses against such income?

CA Manish

CA Manish (Expert)
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31 October 2012 No, it cannot do so.

Rent Income from building has to be shown under the head of Income from House property.

swasti

swasti (Querist)
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31 October 2012 But the company's sole business is acquiring the property and letting it out. In such a case, what would be the case.

CA Manish

CA Manish (Expert)
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31 October 2012 Yes it has to be shown under Income from house property.

CA Manish

CA Manish (Expert)
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31 October 2012 Ref. Sec 22 which is charging sec of House property Income:-

Section 22. INCOME FROM HOUSE PROPERTY.

The annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner , other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to income-tax, shall be chargeable to income-tax under the head "Income from house property".

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swasti

swasti (Querist)
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31 October 2012 Thanks a lot Sir.

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