Income from car rentals

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2012 I am a salaried employee and purchased a car during the FY.

Although I am using this car for personal purposes but I have also earned rental income from letting of car on hire.

Please clarify whether the income from car rentals be treated as "Income from other sources" or "Business Income"?

Thanks for your support.

Shall I claim repair, insurance & depreciation from rental income.

And what if the same source of income continues in the next FY also..

Sanket

Sanket (Expert)

05 August 2012 As its not your regular business.....
The rental income from Car will be taxable under the Head " Income From Other Sources"

ITR 1 will apply....with Salary and Other Income.....

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2012 Am I entitled to claim Depreciation , repair & Insurance amount from the car rental income..

Secondly, what if the same source (i.e car rental income)continues in the next FY also...

Amol S Joglekar

Amol S Joglekar (Expert)

05 August 2012 The choice is with you. You need to decide how long you are going to continue with this unregistered business... hiding from RTOs and all that... I think ITR 2 would be ok rather thatn ITR 1

SANYAM ARORA

SANYAM ARORA (Expert)

05 August 2012 Agreed with the reply

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

25 August 2012 Suggest You to Show it Under Sec 56, File ITR 2, Other Source Income, & Also U Can Claim Dedn U/s 57 any Expenses Incurred.
But You Cant Claim Depreciation on That.
You Can Claim Repairs & Insurance if Any.

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