INCOME FROM HOUSE PROPERTY

This query is : Resolved

DEBJIT MAJUMDER (Querist)
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07 April 2010 MR.X,AN INDIVIDUAL LET OUT A PROPERTY TO ABC BANK AT A MONTHLY RENT OF RS. 10000/- P.M.,WHETHER THIS INCOME IN THE HANDS OF MR.X WILL BE TAXABLE UNDER THE HEAD OF INCOME FROM HP?
IF IT IS XYZ LIMITED IN PLACE OF MR.X,LET OUT TO BANK,WHETHER RENTAL INCOME IN THE HAND OF XYZ WILL BE CHARGEABLE UNDER THE HEAD OF INCOME FROM HP?

Amit

Amit (Expert)
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07 April 2010 What ever the status of the taxpayer be, the Income from letting out a property will be taxable as Income from House Property

DEBJIT MAJUMDER

DEBJIT MAJUMDER (Querist)
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08 April 2010 ok.but suppose XYZ LIMITED let out some portion of its office building to another company,whether income from rent will be taxable under income from HP in the hands of XYZ LIMITED?

Amit

Amit (Expert)
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08 April 2010 Yes

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 April 2010 AGREE

shakuntala chhangani

shakuntala chhangani (Expert)
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08 April 2010 Friends, income is taxable under the head "income from house property" only if the assessee is the owner of a house property. Income from sub letting is not taxable u/s 22 but is taxable u/s 56 under the head "Income from other sources" The owner may be an individual, firm, company, co-op. society, or Aop.
Regards, CA Shakuntala Chhangani

Amit

Amit (Expert)
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08 April 2010 Dear Shakuntala, I think in the query nowhere it is mentioned that XYZ LIMITED is not the owner of the property or that it is a case of Subletting.

shakuntala chhangani

shakuntala chhangani (Expert)
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09 April 2010 My dear, i can also see that. I just gave the provision so that the queriest can understand that the change in the status of owner (from Mr. X to XYZ Ltd.) will not change chargeabiiity part of income from house property.

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