Rental Income Urgent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2011 Whether Renting of roof for Mobile Tower Taxable Under House Property or Other Source, Please Clarify with suitable Reference available

DEEP SINGH TOMAR

DEEP SINGH TOMAR (Expert)
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24 June 2011 Hello Friend

Any income form house Property for Commercial purpose treated as business income

Thanx

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2011 I don`t think so, it is specifically written Under IT Act that even if assesse is engaged in Renting Property business it will be Taxable Under House Property

DEEP SINGH TOMAR

DEEP SINGH TOMAR (Expert)
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25 June 2011 Under Sec. 22, the annual value of a property, consisting of any buildings or land attached thereto is chargeable to tax in the hands of assessee owner, provided it is not used for the purpose of assessee’s business or profession. Thus:
a) Income from subletting is not taxable under this head
b) Income from vacant land is taxable under income from other sources.
c) Annual value of property used by the owner for his own business or profession is not chargeable to tax
d) If the assessee lets out the building or staff quarters to the employees of business whose residence there is necessity for the efficient conduct of business, the rent collected from such employees is assessable as income from business and not as an income from house property.
e) If a building is let out to authorities for locating bank, post office, police station, etc., income from such building will be assessable as income from business and not as income from house property, provided the dominant purpose of letting out the building is to enable the assessee to carry on his business more efficiently and smoothly.
f) Where the assessee hires machinery, plant or furniture belonging to him and also buildings for a composite rent and if the rent of the buildings is inseparable from the rent of the said machinery, plant or the furniture, the income from such letting is not chargeable to income tax under the head ‘Income from house property but is taxable under the head ‘Business or Profession’, if such letting is his business or under ‘income from other sources’.
g) Paying guest accommodation. It is assessable as business income.

thus it is clear from above provision of income tax amount received from building letting out of roof for Mobile Tower Taxable Under PGBP

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