banner_ad

HP - Maintenance Charges received - Income from Othersources

Tax queries 701 views 1 replies

Hi

One of my client has a property (which is let out as a guest house). The client pays maintenance charges on a monthly basis.

1. Can we show the amount received from tenant as income from other sources and set of the maintenance charges paid against it? and tax only the rent received portion as income from HP. 

2. If the house was kept vacant for some time, can we show loss from other sources - which is excess of maintenance paid over receipt of maintenance charges?

If you can explain whether the approach is correct and if so, any case laws to support (if any).

Thanks

Replies (1)

Dear Sir,

Income will be assessed as Business Income & maintenance charges can be claimed as deduction.

Income from paying guest establishment is business income - Where owner of property is running paying guest establishment, income from property is assessable as business income - Manohar Singh v. CIT [1965] 58 ITR 592 (Punj.).


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details