Income from House Property
This query is : Resolved
24 December 2008
X,Y & Z are partners in a Firm XYZ & Co in chennai. The firm is using the premises jointly owned by X,Y & Z.
1) Can the Firm pay rent for the premises to the partners? Is there any restriction to it?
2) If the Firm pays Rent whether will it be taxable in the hands of the partners or we can claim it as Building used for business?
1) Can the Firm pay rent for the premises to the partners? Is there any restriction to it?
2) If the Firm pays Rent whether will it be taxable in the hands of the partners or we can claim it as Building used for business?
25 December 2008
1) Yes, firm can pay rent to the partners. No restriction on this.
25 December 2008
2) If firm pays rent, then it will be taxable in the hands of partners and at the same time firm can claim the rent as business expense.
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