TAX TREATMENT OF HOSPITAL GIVEN ON LEASE

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Rashmi (Querist)
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19 June 2010 What will be the tax treatment for a hospital given on lease in the hands of an assessee who previously owned the hospital???
whether the lease rental received by the assessee should be taxed as::
# under income from house property?
# under profits or gains from business?
#under income from other sources??
please provide an explanation along with the solution..

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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19 June 2010 As per the provisions of Section 22 if the assessee is just receiving the rental income and assessee himself is not relate to the property for any business or profession, in such a case, rental income shall be considered under the head income from house property.

Rashmi

Rashmi (Querist)
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23 June 2010 thanx for the reply sir.. but what if the hospital is given on lease by the assessee fully equipped?? as in along with the assets and everything?

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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23 June 2010 In such a situation all the assets will be considered under the head Income from business and Profession and rental income received will be reduced by the depreciation allowed as per Section 32 and balance amount will be taxable.

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