Sub lease rent
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 June 2011
My client has purchased a Leased property which consists of plot & shed on it. He has now subleased it & under the terms of Lease agreement he has to spend Rs.15 lacs( maximum) as expenses for repair of the said shed.Assese is a Private Ltd. Co. & the main object does not have leasing as the main object.
Question arises;-
1;- How to treat the said Income i.e House Property head or Business Income.
2;- If it is House Property Income deduction allowable will be 30% only or both as this is the part of Lease agreement.
3;- If it is treated as business Income, Expenses will be deducted 100%.
4;- Under such case what type of tax planning he should be advised.
Please reply.
Question arises;-
1;- How to treat the said Income i.e House Property head or Business Income.
2;- If it is House Property Income deduction allowable will be 30% only or both as this is the part of Lease agreement.
3;- If it is treated as business Income, Expenses will be deducted 100%.
4;- Under such case what type of tax planning he should be advised.
Please reply.
CMA Ramesh Krishnan
(Expert)
26 June 2011
Income from sublease will be treated as Business Income
ITAT, BANGALORE BENCH `B’, In The case of: Prestige Estate Projects Pvt. Ltd. v. DCIT, Appeal No.: ITA No. 218/Bang/09.
ITAT, BANGALORE BENCH `B’, In The case of: Prestige Estate Projects Pvt. Ltd. v. DCIT, Appeal No.: ITA No. 218/Bang/09.
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