Business income or income from house property

As your purpose of letting the properties is to earn rental income, it shall be charged under the head "House Property" and not under "Business/Profession".

Originally posted by : Sangeet Lodha
	As your purpose of letting the properties is to earn rental income, it shall be charged under the head "House Property" and not under "Business/Profession".

agree...always in house property

since there is a specific head for the house property income so it will be taxable in house property head and not pgbp...... and u cannot claim depreciation 

thanks...

Shall be charged under Income from HP and Can not claim depreciation.

you are getting rent by letting out the rooms, so income earned in  form of rent shall be chargeable to tax under the head of "INCOME FROM HOUSE PROPERTY"

FURTHER ou cant claim any DEPRICIATION.

Letting of property with furniture - Where from agreement between two parties, it was clear that primary object was to let out portion of property with additional right of using furniture and fixtures and other common facilities, income derived from said property was income from property which should be assessed as such - Shambhu Investment (P.) Ltd. v. CIT [2003] 129 Taxman 70/263 ITR 143 (SC).

if your main purpoes is not to earn income from house property than such income is a business income and assessee can take a claim of depreciation but if such income is of income under head house property than there is no specific claim for depreciation bcog in this head we take 30% of NAV  for various expanses except int on loan .

house property

income from house property

i have my own house in ludhiana. but for job i had to come to chandigarh. In chandigarh i lives in rented house. I want to know can i claim hra exemption in income tax act. Another question i want to ask i am paying intrest  on loan to bank for construction of my house. can i get the exemption of intrest of loan borrowed for construction of house in income tax act. In income tax is there only exemption is availabe for interest payment or there is exemption for principal payment.

Originally posted by : harishraj
	i provide rooms on monthly  rent (only one room with attach toilet),change bed sheet, clean room, minimum staying period is 3months , no food .how will this be accounted -business income or income from house property .can i claim depreciation if it is business income            - harish NOTE; Income from paying guest establishment is business income - Where owner of property is running paying guest establishment, income from property is assessable as business income - Manohar Singh v. CIT [1965] 58 ITR 592 (Punj.).

establish co-relation with ur municipal Tax receipts, its used for "domestic" or "commercial"

if u show this as business , then u have to pay municipal taxes as "commercial" otherwise house property income.