Income tax on rental income

This query is : Resolved

PRANAY JAIN (Querist)
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15 September 2014 Dear Sir,
I am leasing a residential property to company for 11 months. Their are 2 portions in the agreement, 1st rent(Rs.40,000/Month) and 2nd charges (Rs.25,000/Month) for other fixtures like furniture, ACs, Washing Machine,Microwave,etc.
Would the expenses incurred for other fixtures would be allowed in income tax.
I have given a contract for this service to local electrician their.
Do i have to write anything special in my agreement with the company.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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15 September 2014 Since in your case the Rent can be separated for both

Then
firstly your Rent from Property will be taxed under House property and no separate deductions are allowed except as allowed under Sec.24

Secondly Rent Income from Other Various items will be taxed under Income from Other sources and you can claim Depn Expenses for the same under section 57 &
other Incidental Revenue Expenses for the earning the income.
Note:the same is under other sources if the income is not chargeable to income-tax under the head “Profits and gains of business or profession”

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