House property

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Astaf Mansuri (Querist)
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07 October 2011 dear experts,

i am practicing CA since couple of months i have query regarding deduction of 30% on house rent income in following cases.

1. if individual owning a another house then on rent income from such house, it is valid to claim such deduction, but if owning not house but only fully constructed shop then can he can claim such 30% deduction? as per my view it should not be available, but i am getting mix opinion from my friends. so it is confusing and i need you valuable opinion.

2.hotel cum guest house owing pan shop, rent from such pan shop is eligible for the deduction from house property. i am totally against this kind of treatment. but same again require your valuable opinion.

thanks for showing interest to read this. and best luck.

CA.M Chowdary

CA.M Chowdary (Expert)
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08 October 2011 the charging section of house property speaks of rent received from any letout property. the deduction of 30% will be available for any rental income. the basic idea for allowing 30% deduction is for repairs and maintenance. so u have to allow the deduction.

in respect of hotel cum guest house the letting out of pan shop is not the main activity of the assessee. he is just letting out a place in his premises. it should be taxable under hp only

Astaf Mansuri

Astaf Mansuri (Querist)
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08 October 2011 so u mean rent received from commercial property is also taxable in HP ?

CA.M Chowdary

CA.M Chowdary (Expert)
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08 October 2011 yes it will be taxed under hp.

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