TAX ADVISOR & CONSULTANT AT G.S.T SUVIDH
1372 Points
Posted on 11 August 2013
If the firm priniciple business is renting house property,then Income from such property is taxable under the head Income from business or profession.in such case deduction is available regarding Interest and remuneration subject to limits prescribed under 40(b) and if it not its principle business then Income from such letting out shall be taxable under the head Income from other sources.In both cases deduction regarding partners remuneration and interest shall be available.because even though it is taxable under the head income from other sources,u can generally claim deduction regarding expenditure incurred which is necessary to earn such income.and furthur to claim an income under the head House property,assesse should be owner of such house property,as in ur case as firm can not purchase a house property in its own name as it need to be registered under any one or more partners of the firm, a firm can not have income from House property.so partners remuneration and interest after standard deduction of 30% will not arise.
sir pls intimate me if iam wrong in any aspects of the above assertions and also incase of correct enable me furthur to proceed with these assertions