Head under which taxable

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vijaya seksaria (Querist)
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17 May 2014 If a part of a building is let out for commercial purpose and a part is being used for doing business, can the whole income be shown under the head Income from Business/Profession simultaneously claiming the benefit of depreciation and other expenses on the whole of it?

Sandeep Dharar

Sandeep Dharar (Expert)
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17 May 2014 No the Part used for ur own Business will b treated as self occupied property & the part from which rent is received is taxable as IFHP.

Sandeep Dharar

Sandeep Dharar (Expert)
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17 May 2014 It is like that suppose u have a building(3 storied) n the 1st floor is occupied by u & the 2nd one is let out & the 3rd one is vacant then 1st will b taxable as Self occupied, 2nd one as let out & the 3 one will also b taxable as deemed to b let out.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 May 2014 please note that by virtue of section 22, property or part of property used for own business is not included in house property.

Section 22 read as
"The annual value of property consisting of any buildings71 or lands appurtenant71 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".

vijaya seksaria

vijaya seksaria (Querist)
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17 May 2014 Thanks for ur replies..

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