Income from house property
This query is : Resolved
27 July 2007
Hi Friends,
An assessee has purchased a commercial property and let it out for commercial purpose.
Whether the rental income should be shown as income from house property or as income from the business? The assessee is having other business also.
What i understood is that the department is always insist for house property income rather than business income.
What difference it makes if the assessee let out its property along with furniture
Pl. Let me know your views.
An assessee has purchased a commercial property and let it out for commercial purpose.
Whether the rental income should be shown as income from house property or as income from the business? The assessee is having other business also.
What i understood is that the department is always insist for house property income rather than business income.
What difference it makes if the assessee let out its property along with furniture
Pl. Let me know your views.
28 July 2007
Any property income has to be taxed under Income From House Property. However, the Rental of Furniture would be taxable under Income from Other Sources. The expenses incurred on account of the property rental will be added to Business Income since the adhoc deduction of 30% for Repairs & Collection Charges is being given for Income From House Property whereas the Municipal Taxes are allowed on payment basis.
05 August 2007
Dear Sir
Income from property cannot be business income unless the main object of the company itself is letting out property. Yet it should be taxed under income from HP on;y.
Letting out furnished property makes no much difference in the above said position as far as taxation is concerned in practice.
Income from property cannot be business income unless the main object of the company itself is letting out property. Yet it should be taxed under income from HP on;y.
Letting out furnished property makes no much difference in the above said position as far as taxation is concerned in practice.
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