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House property

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Dharmendra kumar Rajpoot

63 Points Posted on 08 October 2020

if an assessee earns rent from a sub-tenent in respect to tenanted property, let out as a residence. the said rent is -
1. exempted u/s 10
2. taxable the under the head income from house property.
3. taxable as business income, as the letting out is commercial activity.
4. taxable as income from other sources

which one is correct ans. pls

Replies (3)

Quick Summary

This discussion clarifies the tax treatment of rental income earned by a tenant from sub-letting a property. While rental income from a primary residence is typically taxed under 'Income from house property', income derived from sub-letting is not. Instead, such income is generally taxable as either business income or income from other sources, depending on the specific circumstances.

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 08 October 2020

Rental income in the hands of owner is charged to tax under the head “Income from house property”.
Rental income received by a tenant from sub-letting cannot be charged to tax under the head “Income from house property”. Such income is taxable under the head “Income from other sources” or profits and gains from business or profession, as the case may be.