Help required related to Income from house property

Hi All...I need a help in solving two questions related to "Income from House Property"..from the paper "Tax Laws"-Executive Programme. the questions are as follows:

1. X owns a property, which is given on lease to Y for a period of 6 yrs, lease rent being Rs.10,000 per month. Y...more has a right to get the lease renewed for a further period of 6 yrs. Will this be treated as Income from House Property?

2. X owns a property, which is given on lease to Y for a period of one month rent being Rs.5,000. Y has a right to get the lease renewed for a period of one month, in each subsequent month, and such renewal is possible with mutual consent till 2020. Will this be treated as Income from House Property?

Any help will be appreciated. Visit my blog on www.reeb-thinks.blogspot.com

Replies (3)

Yes both will be income house property.

AS PER SECTION 27 

THE LESSEE OF BUILDING IN CASE BUILDING IS LEASED OUT FOR NOT LESS THAN 12 YEARS IS DEEMED AS OWNER

 

SO, AS PER MY OPINION

THE HOUSE PROPERTY INCOME IS NOT TREATED AS LESSEE INCOME AS HE IS NOT THE OWNER OF BUILDING

Error in first part of the answer as i had thought that only original term should not exceed 12 years which is not the case as the section reads

 

(i) in relation to any immovable property referred to in sub-clause (i) of clause (d), means transfer of such property by way of sale or exchange or lease for a term of not less than twelve years, and includes allowing the possession of such property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882).

Explanation.For the purposes of this sub-clause, a lease which provides for the extension of the term thereof by a further term or terms shall be deemed to be a lease for a term of not less than twelve years, if the aggregate of the term for which such lease is to be granted and the further term or terms for which it can be so extended is not less than twelve years ;

So even extension will be included and hence answer in first case would change.

 

But for the second part the date of starting the lease should be known to comment whether the same exceeds 12 years or not as if the term starts from 2010 it is a 11 years leas and hence not covered under section 269UA.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details