Commercial building rent is house property income or what

1. it is taxed under the head income from house property.

2. only 1.5lacs is deducted u/s 24(b)

3. & u can also claim 30%deduction.

According to me what is important here is the purpose of constructing the building,which is commercial in this case, hence according to me the rent received from letting of commercial building will be a business income. against which entire 3.5lac interest will be allowable as deduction.

@ Gaurav purpose of construction does not matter for income tax.

the property is let out, only this is important. If the assesse uses the property for own business than full deduction can b claimed and assesse can also claim depreciation on the given building, bt in given case it is let out hence taxed u/h HP.

The main purpose of the person letting out the property is to be seen rather the end use of the property. If the purpose of the owner is to earn rental income such income is to be charged under HP & if such letting out is only anciliary to the main objective of earning Business Income it should be charged under PGBP.

In the above case the rental income is to charged under HP & Rs. 1.5 lakhs can be claimed u/s 24 along with the 30% standard deduction.

Sir,

Yes, for commercial purpose it is taxable under the head business(i.e., rent is the direct income)

Aditya my friend if predominant objective of receiving such rent is commercial exploitation of such property than such income will be chargeble under the head business income.

The charging head is Income from house property and the very purpose of this building is for commercial purposes and rented for business purposes. Hence, it is taxable as business income and not as house property.