Rent income
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 October 2014
sir, my client have a factory premises, due to bad market condition his business is not running properly. It is a pvt. ltd. compnay they are planning to let it out on rent basis factory premises to others. my queries is this when they receive rent can they treat rent as a business income and from that can they claim expenses like salary to office staff, office expenses etc. or not. can they pay director remuneration from that income. kindly advise me please.
NOTED SIR
BUT MY QUERIES STILL PENDING CAN I CLAIM EXPENSES AGAINST BUSINESS INCOME IF I TREAT, MY PAST YEARS LOSS CAN I TAKE SET-OFF IN CURRENT YEAR INCOME (WHICH IS COMES FROM RENT INCOME) OR NOT PLEASE ADVISE
NOTED SIR
BUT MY QUERIES STILL PENDING CAN I CLAIM EXPENSES AGAINST BUSINESS INCOME IF I TREAT, MY PAST YEARS LOSS CAN I TAKE SET-OFF IN CURRENT YEAR INCOME (WHICH IS COMES FROM RENT INCOME) OR NOT PLEASE ADVISE
Nikhil Kaushik
(Expert)
20 October 2014
most probably it would considered as income from house property.
however, the business loss that would be there on account of business expenses can be set off against this house property income.
however, the business loss that would be there on account of business expenses can be set off against this house property income.
CA.Vinita Gupta
(Expert)
20 October 2014
It has to be considered under Income from House Property
CA R SEETHARAMAN
(Expert)
20 October 2014
Where a factory building is let out, the rent received generally is income from business in the hands of the lessor or the owner of the factory. Depreciation, salary office expenses and Directors remuneration can be claimed.
Nikhil Kaushik
(Expert)
20 October 2014
seetharaman - any case law to back it up?
20 October 2014
Hi
Both the rental incomes i.e.Residential / Commercial will treated under the head Income from House Property
You can claim 30% as Repairs & Maintenance u/s.24 A of IT Act. on the net rental amount received after deducting Water & Property Tax payments.
You may claim depreciation as per IT Act.
If property taken on loacn then you can also claim interest on loan taken u/s24B.
Losses from business/profession can be set off against all income heads other than salary.
Thanks
Both the rental incomes i.e.Residential / Commercial will treated under the head Income from House Property
You can claim 30% as Repairs & Maintenance u/s.24 A of IT Act. on the net rental amount received after deducting Water & Property Tax payments.
You may claim depreciation as per IT Act.
If property taken on loacn then you can also claim interest on loan taken u/s24B.
Losses from business/profession can be set off against all income heads other than salary.
Thanks
CA R SEETHARAMAN
(Expert)
20 October 2014
Please refer the following links.
https://www.incometaxindia.gov.in/Tutorials/TDS-Rent-194I-194C.pdf
https://indiankanoon.org/doc/1698049/
https://www.incometaxindia.gov.in/Tutorials/TDS-Rent-194I-194C.pdf
https://indiankanoon.org/doc/1698049/
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