Rental income under which head taxable

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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 online

Kollipara Sundaraiah online

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

CA Puja Sharma

CA Puja Sharma (Expert)
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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

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