Treatment of Income from renting the immovable property

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Shaymsundar (Querist)
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20 April 2009 Hello Sirs,
Can somebody clarify me on the treatment of the rent received by letting a building by an Public limited company viz., whether the amount is to be shown as business income or should it be treated as Income from House property ? in the company annual IT returns. The related rule position may please be provided.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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20 April 2009 any rent recived by owner of a house property from letting it out (for any purpose viz. residential or commercial)shall be taxable as income from House property

so the rent shall be taxable as Income from House property, provided u r owner of the property

Brij Bhushan Sangal

Brij Bhushan Sangal (Expert)
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21 April 2009 Dear shyamsunder,
Decision whether rent income will covered in business income or in houseproperty income will depand on nature and objective of company business for which company registered. if company business is providing premises on rent to people, it will covered under business income.any other case it will covered under houseproperty income.income tax return will reflect accordingly.

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