Income from letting out building

This query is : Resolved

Sunil Bhasin (Querist)
Follow

02 March 2013 The assessee is a private limited Company and owns only a building which is letted to different tenants. The assessee company is not carrying on any other business. Whether the Rental Income is a business Income or Income from House property..?

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
Follow

02 March 2013 its chargeable under Income From House property

as per the provision
The annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner shall be chargeable to income-tax under the head "Income from house property".

Note
other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to income-tax (the Same property)

CA. PIYUSH GOEL

CA. PIYUSH GOEL (Expert)
Follow

02 March 2013 it is clear in the income tax provisions that if an assessee is enaged in the buisness of letting out immovable property still its income would be assessed under the head income from house property. and under head income from house property apart from standard deduction and interest on loan noting is deductible.

Sunil Bhasin

Sunil Bhasin (Querist)
Follow

02 March 2013 Thank You Experts. But in my case at the time of assessment u/s 143(3), it has been assessed as Business Income by the AO, however we had treated the Income as rental income. Whether the AO can treat it as Business Income..??

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
Follow

02 March 2013 no he cannot treat the same

but depends on what basis he took that decision

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok