Rental income on under construction shop
This query is : Resolved
11 January 2012
ABC Ltd is a construction company. It is having one under construction commercial project on which if 50% of shop value is paid by customer as advance, then rent will be received by the customer till the completion of project.
Q1. so whether these rent paid to customer will be claimed by ABC Ltd i.e. added to the cost of the project?
Q2. From customer point of view rental income will be charged under the head as income from other sources or it will be reduced from the cost of shop?
Please reply.
Urgent.
Q1. so whether these rent paid to customer will be claimed by ABC Ltd i.e. added to the cost of the project?
Q2. From customer point of view rental income will be charged under the head as income from other sources or it will be reduced from the cost of shop?
Please reply.
Urgent.
11 January 2012
Hi Shweta,
In case of Real Estate, the ownership gets transferred on possession. Hence even if the customer pays the half amout, ownership is said to have remained with ABC Ltd only. In this case, Rents paid by company can be added to Cost of Project and from customer point of view, as he is not still the ower of the same property, rentreceived will be Income from Other Sources.
In case of Real Estate, the ownership gets transferred on possession. Hence even if the customer pays the half amout, ownership is said to have remained with ABC Ltd only. In this case, Rents paid by company can be added to Cost of Project and from customer point of view, as he is not still the ower of the same property, rentreceived will be Income from Other Sources.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Scrutiny and reopening of past returns
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Under construction property in ITR
- PPF interest-As Exempt Income disclosure
- Not able to file ITR
- Building tax payment deduction in rental Income
- Upload Level ValidationITR3Category of Defect B/D
- FEMA regulation Act. for inward remitance
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
