Income tax

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YAGNESH HASMUKH DAVE (Querist)
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20 February 2016 I AM HAVING FACTORY SHED AT MIDC AND PARTLY USED FOR MY OWN BUSINESS PART OF THE FACTORY IS GIVEN ON RENTAL AND PAYER IS DEDUCTED TDS U/S 194I WHETHER THE RENT INCOME WILL BE CONSIDERED IN HOUSE PROPERTY INCOME HEAD OR BUSINESS INCOME PL CLARIFY THE HEAD OF INCOME

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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20 February 2016 Part of the Factory has been rented out to some other person, who is not part of your business. Hence the nature of transaction with your tenant is one of Landlord-Tenant.

Therefore rent paid by tenant is pure rent and should be considered under the head "Income From House Property" or at the extreme "Income from Other Sources".

There is no way the rental income can be treated as Business Income, since there is no proximity between the source of income and your business - which is what the Department will seek to establish, if the same is claimed as Business Income.

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