rent received from company by director

This query is : Resolved

CA Nagendra (Querist)
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12 December 2009 hi friends
someone help me

Director of the company receive no rent from a private company in which he is director.
whether Notional rent is taxable under house property?

whether we can apply the exception of sec 22 of income tax act (i.e. whether we can say that the companies business is the business of the owner-ie.director)

i m unable to find any legal decision regarding this issue

please if any one have solution help me

thanks
Regards
Nagendra Sah

CA Balram Sharma

CA Balram Sharma (Expert)
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12 December 2009 yes rent will be taxable , in the hand of director under house property

CA Nagendra

CA Nagendra (Querist)
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12 December 2009 whether we can apply exception to sec 22?
i.e. purpose for business or profession

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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12 December 2009 No; the Director and the Company are separate legal entity. Business is being run by the Director for the Company. Hence it is the business of the company.

Hence you cannot claim exception to Sec. 22

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