Rental income under which head taxable

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies how to classify rental income from commercial properties for tax purposes. Generally, if the property is commercial, it's treated as business income. However, if the company isn't in the rental business, it falls under income from house property. Income from letting out open spaces is considered business/profession income.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
Follow

07 January 2022 Sir,
Assessess rental income from commercial property received.
Question:
Rental income is show under house property or business income or other sources head treatment in it act.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

07 January 2022 It's commercial property show it as business income.

CA Puja Sharma

CA Puja Sharma (Expert)
Follow

07 January 2022 If the company is not under rental business then show it under Income under the Head House Property.
If the company is engaged in letting out its open spaces for rent then rental income will be Income from Business/Profession

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now