House property

This query is : Resolved

indu (Querist)
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22 August 2015 DEAR SIR,
MY CLIENT IS OWNER OF A FACTORY PREMISES CAN RENT RECEIVED FROM THE FACTORY BE TREATED AS INCOME FROM HOUSE PROPERTY. PLZ SUGGEST WITH RELEVANT SECTION.
AND WHAT IS MEANING OF SELF OCCUPIED COMMERCIAL PROPERTY.

THANKS

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 August 2015 There is no section as such to decide the issue raised by you. However, the issue may be solved on the following lines:-

1. If the factory is temporarily let out , such rent should be offered as'business income'.

2. If let out permanently with the intention to close down the business, rent is 'income from house property'

3. If factory is let out along with machinery therein and rent cannot be segregated between building and machinery ( composite letting) then rent should be offered under'income from other sources'.

4. I don't know the concept of 'self occupied commercial property'.

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