Income under the Head House Property

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This query is : Resolved

Zeeshan (Querist)

28 October 2010 A Pvt Ltd Co is having income from Rent only from its Building which is also shown in its Balance Sheet.

Company is not having any other Income but there are Expenses of regular nature such Audit Fees , Intt on Loan which was taken for the same Property, Prof Charges Etc. and Company does have any business right now.

Profit & Loss A/c as follows

Income:
Rent 72000/-

Expenditure:
Audit fees 10000/-
Bank Charges 2530/-
Intt On Loan 25300/-
Dep on Building 15000/-

Now there is a loss under Head Business & Profession as per Income Tax.
Can we set off against house Property Income?
Please Calculate Tax Liabilty Of Co.
Give your view with valid reason such Case law, Sections etc

Hope you understand my Query

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

29 October 2010 Yes under the inter head setoff, busniss loss can be setoff against income from house property.

taxindiaconnect

taxindiaconnect (Expert)

29 October 2010 Agree with shailesh that business loss can be set off against property income. Since this is a very straight query, no need to give any case law etc.

However to add s new dimension to this query, since there is no revenue during the year, the expenditure under the head business and profession shall not be allowed as a deduction and loss will not be available for set off against the property income.

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