Sec22

This query is : Resolved

surendra kumar (Querist)
Follow

06 April 2013 the business of the partner ship firm is carried in the premises of which one of the partner is the owner. under which head the rent recd by the partner from the firm is taxed

CA. SUDHARSAN K G

CA. SUDHARSAN K G (Expert)
Follow

06 April 2013 The transaction in a simple words:

1) Firm is paying the Rent to one of its Partner for using the Office Premises.

2) Hence, the Rent is allowed in the hand of the Firm under section 30 of the Income Tax Act.

3) At the same way, the Rent Received by the Partner is chargeable to tax under the head "Income from House Property".

(Note: If the firm is not paying the Rent to that premises, it is not chargeable under the head Income from House Property, since it is used by the Partner for Business Purposes)

Message likes : 1 times

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

06 April 2013 Rent received will be taxable under the head Income from House Property.

surendra kumar

surendra kumar (Querist)
Follow

08 April 2013 dear sir,
why there is a contrary that when the firm is paying rent we treat firm and partner as different person and while the firm is not paying rent we consider both are same.

surendra kumar

surendra kumar (Querist)
Follow

08 April 2013 dear sir,
why there is a contrary that when the firm is paying rent we treat firm and partner as different person and while the firm is not paying rent we consider both are same.

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