Rent received
This query is : Resolved
21 July 2012
sir i have a property
i have let out same to Bank at say 50000 pm
now bank wanna do capital construction of 200000, as per our deal. bank will give 100000 to me by cheque for such construction. and balance 100000 i have to pay for such construction.
construction will be done by me of 200000
now my question is
amt of 100000 i m receiving from bank for construction is ma income.
can i treat it as rent or it has to be income from other sources
( note this 100000 is additional to rent of 50000 pm)
i have let out same to Bank at say 50000 pm
now bank wanna do capital construction of 200000, as per our deal. bank will give 100000 to me by cheque for such construction. and balance 100000 i have to pay for such construction.
construction will be done by me of 200000
now my question is
amt of 100000 i m receiving from bank for construction is ma income.
can i treat it as rent or it has to be income from other sources
( note this 100000 is additional to rent of 50000 pm)
Amol S Joglekar
(Expert)
21 July 2012
Ajay, I do not think any bank will give you 1 lakh just for the sake of it. If it is so, you are lucky. If you permit, please let me know the name of the BANK. My client has got atleast 100 odd properties in INDIA. He will be very happy. ( The loan given by bank of capital construction is capital receipt. It is not taxable) If the bank is giving 1 lakh as ADVANCE RENT, then it will be taxable in the year of receipt.
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