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Income from business on rent of service apartment

Tax queries 510 views 1 replies

Susmita Dutta, CA , CPA

2141 Points Posted on 10 December 2019

Dear Professionals,

One of our client was NRI on 2014-15 (working on marine) had additional income from rental on service apartment which has been shown in the income tax return as income from business.

But received a notice from the department that the income should be shown as income from house property.

Please let me know if you have any suggestion supporting that it is income from business with supporting case laws.

Replies (1)

What do you mean by business on rent of service apartment !!

Service Aptt meaning. ......
This is normal rental income on letting out of house property.

It's okay that such rental income is charged under IFHP provided such property is eligible for renting

On rent income you get 30% straight deduction towards wear and tear on tent income as reduced by local tax payments .

I think it will be considered as IFHP as the main source of income is salary and rental income is you may not call it as business income.

it will be specifically IFHP.