Composite rent is taxable as other sources

In case of indivisible contract for letting of property and furnishings, composite rent is taxable as other sources

 

Where letting of building and letting of fixtures, fittings, air-conditioning plant, furniture, etc., were inseparable, rental income be assessed as income from other sources

Replies (6)
taxable as other source income

Yes, S/22 :

 

The taxability of Composite Rent can be well understandable by considering Two cases mentioned below:

Case1: Where total amount are inseparable

Where composite rent consists of rent for the building & hire charges for other assets & the two rents are inseparable, then the entire amount is chargeable under the “Business Income” or “Other Sources”, as case may be.

Case2: Where total amount are separable

  • Where composite rent consists of rent for the building & hire charges for other assets & the two rents are separable, then rent of the building is taxable under the head “Income from House Property” whereas hire charges of other assets is charged to tax under “Other Sources”.
  • Also, if the composite rent is the mixture of rent of the building & also includes service charges for some services, then the total amount is spilt into rent & service charges. Rent gets taxable under “House-Property” & Service charges under “Business Income.”

Composite Rent is taxable as Income From House property & if its clearly divisible & Demarcation of Rent Recd for property & Other facilities are mentioned & Evident in your agreement or have Seperate Agreements for both this Parts Then Property rent under HP & Other Rent under Other Sources

ALL ABOVE THANKS FOR REPLYING BUT I M INFORMING NOT ASKING

Originally posted by : manoj

In case of indivisible contract for letting of property and furnishings, composite rent is taxable as other sources

 

Where letting of building and letting of fixtures, fittings, air-conditioning plant, furniture, etc., were inseparable, rental income be assessed as income from other sources

Is insurance premium paid deducted from ifos in this case?

Originally posted by : manoj

In case of indivisible contract for letting of property and furnishings, composite rent is taxable as other sources

 

Where letting of building and letting of fixtures, fittings, air-conditioning plant, furniture, etc., were inseparable, rental income be assessed as income from other sources

Is insurance premium paid deducted from ifos in this case?

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