Ifhp

This query is : Resolved

Ca Siddharth Mehta (Querist)
Follow

07 February 2012 Cute Look Premises, a partnership firm owning 10 Flats at Ghatkopar and Mulund has
given these flats on rent to Healthy Look Private Limited. They entered in the lease
agreement from 01.04.2010 to 28.02.2011 for a monthly rent of Rs. 25,000 per flat with
Rs. 2 Lac Deposit per Flat.
On 30.06.2010 Cute Look Premises has received letter from Healthy Look Private
Limited stating they do not need 1-1 Flat each at Ghatkopar and Mulund. They will stop
payment of lease rent from 01.07.2010 onwards and will settle account and give
peaceful vacant possession of flats at the expiry of 11 Month as per agreement. They
have not asked for refund of their Deposit of Rs. 2 Lac for each vacant flat.
While filing income tax return for AY 2011-12, Cute Look Premises, wants to file their
return of income offering actual rents received (excluding the vacant flats) as
(25,000*2*3 + 25,000*8*11) 23,50,000/-
is this Correct?

CA. Hari Kishan

CA. Hari Kishan (Expert)
Follow

07 February 2012 I am of the following opinion:
1. If the income is being offered under the head income from business or profession, then the income shall be the actual rent received.

2. If the income is being offered under the head income from house property then deemed fair rental value of the vacant premises needs to considered for the income tax computation purposes.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Yash

Sneh Choraria

Ashish Agrawal

tsrandcompany@gmail.com

JAYDEEP MITRA

Subscribe Now

Ifhp

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA