Pvt ltd co.

This query is : Resolved

Nilesh Bhutka (Querist)
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21 November 2013 A pvt ltd co. has only 1 source of income that is Rental income.

Because of this only income, 30% goes to government on account of Income Tax.

Now the directors dont want to pay such huge amount of Tax and also want to retain the property which fetches this rental income.

Can u please give me option to save tax by converting into LLP, Partnership firm or any other option so that the Directors can get the same income without paying such huge tax ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 November 2013 Dear Nilesh,

taxation shall remain the same in any case unless you transfer the property to individual's name which would anyways attract capital gains tax.

by the way, you are offering this income under "income from business/profession" or house property?

Nilesh Bhutka

Nilesh Bhutka (Querist)
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23 November 2013 Nikhil Sir,

This Income m offering for tax under House Property

Would it save my tax if i offer the same under Business & Profesion ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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23 November 2013 to offer income under business/profession, you need to establish that you are in the business of leasing properties.

whether it would be beneficial or not shall depend on the quantum of expenses. If the expenses are less than 30% of the revenue, then no point in going for "income from business or profession."

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