Heads of income - urgent!!
This query is : Resolved
19 August 2014
Respected Sir,
In which head of income the following incomes of a property dealer should be taxable (selling & renting of property both are his main business)? Please correct me if I am wrong with satisfactory legal reasons.
i) Rental income from property owned by him – Though property is held as stock in trade but income taxable u/h “House Property” u/s-28
ii) Commission income from property given on rent on behalf of its owner – Income u/h “PGBP”
iii) Sale of owned property – Income u/h “PGBP” as block of assets as it is held as stock in trade & thus cannot be taxed u/h “Capital Gains”
iv) Commission income from sale of property on behalf of seller / owner - Income u/h “PGBP”
In which head of income the following incomes of a property dealer should be taxable (selling & renting of property both are his main business)? Please correct me if I am wrong with satisfactory legal reasons.
i) Rental income from property owned by him – Though property is held as stock in trade but income taxable u/h “House Property” u/s-28
ii) Commission income from property given on rent on behalf of its owner – Income u/h “PGBP”
iii) Sale of owned property – Income u/h “PGBP” as block of assets as it is held as stock in trade & thus cannot be taxed u/h “Capital Gains”
iv) Commission income from sale of property on behalf of seller / owner - Income u/h “PGBP”
19 August 2014
for ii & iv, there is no dispute.
but in case of i, there is different judgement available.
for iii, if it is held as stock in trade, it is under pgbp
but in case of i, there is different judgement available.
for iii, if it is held as stock in trade, it is under pgbp
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