Difference between residential and commercial house property

Dear Professional Collegues....

If one individual having two RESIDENTIAL house property one is self occuied and the other one is let out to a company on rent for guest house purpose by the company.....Will that be treated as COMMERCIAL Property in the hands of individual.

For both of the above house, all Municipal taxes and electricity bills are paid by individual as residential house property.

Please provide your valuable feed back......

Replies (6)
whether for income tax purpose or for any other purpose?

For ITR filing, treat it as house income and file in regular manner.

The above let out property was constructed as residential house property for exemption under section 54F. Is there is any chances as per the above discussion if the same may considered as an COMMERCIAL property and chargeable to tax under capital gain!!!!!

If the Individual let out his residential house property (as per municipal corporation record) to a company for guest house purpose....... Shall it be considered as a commecial property in the hands of individual?

 

 

"If the Individual let out his residential house property (as per municipal corporation record) to a company for guest house purpose......"
 For the owner it remains as Residential property only. Company may utilize it as their emplyoees guest house, is not his concern. He himself is not running any guest house in the property.

All other answers sorted out as per residential unit.

Please treat as ordinary income from house in ITR

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

Jain Ankit and Co

Gurgaon

CA Inter

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details