15 January 2019
Respected Sir/Madam, I have constructed a Commercial building. I have shown them as Fixed Assets in my Balance Sheet. I am in the process of leasing the entire Building. I want to know that whether the Income Tax Department will assess my rental income under the head Income from Business & Profession or Income from House Property? I also want to know whether Income Tax Department can calculate Notional/Deemed Rent (Annual Value) on the un leased premises. Kindly Advice.
15 January 2019
If this is not your sole or dominant business, then it shall be classified under the head of income from house property.
If you do not carry out any other business activity except for letting out properties, then the income shall be considered under the head of profits & gains from business & profession.
Chennai Properties & Investments Ltd vs. CIT (Supreme Court)
16 January 2019
Further, I wish to inform that I have not yet received the Occupation Certificate from the Mumbai Corporation. I will be leasing the premises before obtaining the Occupation Certificate. In view of this, I want to know whether the Income Tax Department can calculate Notional/Deemed Rent (Annual Value) on the un leased premises. Kindly Advice.
CAclubindia
