Income from House property
This query is : Resolved
11 February 2010
My client derives the followings income.Please let me know which source should it get taxed.
1)Rental income from shop
2)Rental income from letting of plot for entertainment purpose.
1)Rental income from shop
2)Rental income from letting of plot for entertainment purpose.
11 February 2010
Rental income coming under Income from house property only
11 February 2010
according to me -
Rental income from letting of plot for entertainment purpose should be coming under 'income from other sources'.
Rental income from letting of plot for entertainment purpose should be coming under 'income from other sources'.
11 February 2010
Dear jairam,
Much depends on the facts of each case.The general trend in the dept is that rental income from commercial shops are taxed u /s 22. But a view is also possible where the letting is done on such a scale with so many connected activities and provision of amenities that the income is assessable as business income. If there is evidence of intention to exploit the property commercially then the chances are more that it can be assessed u /s 28.
Or you can atleast plead for bifurcation of income between pure rental income and other income representing consideration for use of common facilities like lifts, parking space, common security etc. You can refer the decision of the Hon' High court of kerala in Attukal shopping complex case.
Regarding letting of plot Sec22 is not at all attracted as there is no building. Then it can be assessed as business income or under other sources and you may apply the usual principles to decide the head.
siva208@yahoo.com
Much depends on the facts of each case.The general trend in the dept is that rental income from commercial shops are taxed u /s 22. But a view is also possible where the letting is done on such a scale with so many connected activities and provision of amenities that the income is assessable as business income. If there is evidence of intention to exploit the property commercially then the chances are more that it can be assessed u /s 28.
Or you can atleast plead for bifurcation of income between pure rental income and other income representing consideration for use of common facilities like lifts, parking space, common security etc. You can refer the decision of the Hon' High court of kerala in Attukal shopping complex case.
Regarding letting of plot Sec22 is not at all attracted as there is no building. Then it can be assessed as business income or under other sources and you may apply the usual principles to decide the head.
siva208@yahoo.com
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- Pass word to open justification report for Q1 for FY 2026-27
- Under construction property in ITR
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- New Garden in Place of Old Garden
- Indian IT Portal issue in computing tax as per UK-India DTAA
- F & O PROFIT REPORTING FOR AY 2026-27
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
