house property deducion

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2010 a firm mnf unit also receives rent as income ....whether that income will be taxable as business income or house property income.....whether deduction for repairs can be claimed (30%)...pls advise

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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11 August 2010 If a Company received rental Income on the property owned by him. It will be treated as Income from House Property and deduction u/s 24 can be claimed.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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11 August 2010 AGREED.

The property that we have been speaking of should consist of buildings or land appurtenant to such buildings. Income from letting out of vacant plots of land when there is no adjoining building will not be taxed under this head (but will be taxed as income from other sources). The existence of a building is, therefore, an essential prerequisite. Building will of course, include residential house (whether let out or self-occupied), office building, factory building, godowns, flats etc. And the purpose for which the building is used by the tenant is also immaterial. Thus, income from letting out godowns will be taken as income from house property. It does not make any difference at all if the property is owned by a limited company or a firm. However, if the building or part thereof is used by the owner himself for the purpose of his own business then there will be no income from such portion of the house property.

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