TAXATION OF RENTAL INCOME FROM WAREHOUSE
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
12 April 2011
WAREHOUSE GIVEN ON RENTAL AS PER REQUIREMENT ON THE BASIS OF NO OF BAGS KEPT IN THE WAREHOUSE. WHAT IS THE TREATMENT OF THE RENTAL INCOME?
IS THE SAID RENTAL INCOME IS A BUSINESS INCOME? AS WE CHARGE THE RENT FOR PER BAG PER MONTH BASIS & FOR NO OF BAGS KEPT IN THE WAREHOUSE.
IS THE SAID RENTAL INCOME IS A BUSINESS INCOME? AS WE CHARGE THE RENT FOR PER BAG PER MONTH BASIS & FOR NO OF BAGS KEPT IN THE WAREHOUSE.
12 April 2011
The rental income is varying and depends on number of bags kept and it is forming the basis of Rental Income.
Logically, the income arises purely due to the use of the premises.
Secondly,
The basis on which it is being calculated, does not changes the nature of income. It still remains Rental Income
Thirdly,
The Fair Rent, Municipal Valuation, and Standard Rent are the criteria which decide the reasonable expected rent (RER).
Whenever Actual Rent is less than RER, for taxation purpose, RER is considered in deciding the gross annual value of the property. Hence, even if actual rent varies, the mechanism of calculation of property income still works. It can not be denied that the income is earned from the house property and as such can be taxed under the head IFHP.
Logically, the income arises purely due to the use of the premises.
Secondly,
The basis on which it is being calculated, does not changes the nature of income. It still remains Rental Income
Thirdly,
The Fair Rent, Municipal Valuation, and Standard Rent are the criteria which decide the reasonable expected rent (RER).
Whenever Actual Rent is less than RER, for taxation purpose, RER is considered in deciding the gross annual value of the property. Hence, even if actual rent varies, the mechanism of calculation of property income still works. It can not be denied that the income is earned from the house property and as such can be taxed under the head IFHP.
16 April 2011
Hi,
Sec 22 the Charging Section will be applicable therefore it shall be taxed under the head " Income from House Property"
Thank you,
Regards
CA. Lohith.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
Sec 22 the Charging Section will be applicable therefore it shall be taxed under the head " Income from House Property"
Thank you,
Regards
CA. Lohith.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
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