H.P. or Other source

Mr.C.Balaji

Mr.A will pay tax on the amount of lease rent recd by him from mr.B

Mr.B will pay tax on the amount of rent recd by him from mr.C

Agree with Atul

Dear Balaji,

Mr. A = income will be taxable under Other sources

Mr B = House Property

My Friend, Atul  - the concept of deemed owner is not applicable in this case, because B has acquired rights in Land & not in building..

I dono sec.269 UA(f).... But Amir is ri8, in saying that Mr.B has taken lease on land and not the building, except on his conclusion.. Both wil be taxable under Other Sources in their respective hands.. Since deemed ownership concept fails, it cant be taxed under IHP.. Its like sublet income and taxable under IOS only......

Dear ahmed,

In case of B, income shall be taxable under House Property beacuse of clear language of sec 22 -

"The annual value of property consisting of any buildings or lands appurtenant thereto.................  "

Brother, I think only building is sufficient for Sec 22

Mr. A's Income will be chargeable under the head Income From Other Sources. 

While Mr. B hold the land more then 12 years so he will be The deemed owner of the Property.  Therefore his Income will be chargeable under the head Income From House Property.

Dear friends....

In the present case Mr.B died before completion of 10 years of holding the land....his legal heir wants to cancel the lease deed and return the land back to Mr.A.... Legal heir C receives some amount from A....What will be the tax treatment and since it does not cross 12 yrs will the amount received by C during part of that year will be charged in IFOS????

Dear Mr. Balaji,

if the legal heirs of B want to return the land back to A, what will happen to the building. Is the building being sold to A?