Conversion of property

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This query is : Resolved

ASHESH BHARDWAJ (Querist)

14 September 2014 My mother has a house on her name the rent income from which is shown by us as business income.Now we want to change it to income from house property . Can we do so and if yes then would there be any problem in this and if not then why?The rent is Rs.24000 p.m.

CA VISHWAKEERTHI.P.S.

CA VISHWAKEERTHI.P.S. (Expert)

14 September 2014 Actually Rent received shall be treated as income from house property . If Rent income with other facility are not separable then it can be treated as business income or income from other source.

Assumption 1 :

So I assumed that you provide the rent along with some furniture and other facility which were not separable from your composite rent.

If you want to claim the rent received under the business income to income from house property you required to separate / split the rent component into building rent and other facility rent.

There by rent received on let out taxed under the income from house property and other facility rent charged under the head income from other source or business income as your wish.

Assumption 2:

If you receive the rent from letting out property only there will be no other facility then

earlier year you claimed wrong head this years onward you can change from business income to house property.

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ASHESH BHARDWAJ

ASHESH BHARDWAJ (Querist)

15 September 2014 There will be no problem in that

CA VISHWAKEERTHI.P.S.

CA VISHWAKEERTHI.P.S. (Expert)

18 September 2014 No problem. You can .

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