Composite rent

Here the income received from renting of the property is separable from the income received from  providing the furniture and the fixtures for rent .

Hence the income received from Renting of property is taxable under the head Income from House Property .

The income received from renting of furniture and fixtures is Taxable under the head Income from Other Sources and under Income from business in case if it your business .

Taxable Income is calculatedd as follows :

Income from Salaries                                                                                                15,00,000

Loss from House Property (1,20,000 - 25,000 - 1,50,000 HL interest)                                -55,000 

Income from Other sources ( Furniture Rent )                                                                2,25,600                                                                                       

Gross Taxable Income                                                                                               16,70,600

In case of let-out property the interst deduction is taken without any limit.  hence the whole of interest of Rs. 6lacs will be deductible

Taxable Income would be as follows: