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Income from commercial property

346 views 3 replies

GST CENTRE

92 Points Joined September 2017

one of my client is getting rent from commercial property. it is the only source of income for him.
he is paying electricity, security, water and maintenance charges etc. from his rental.
corporate companies are hired the ware house they are paying all above a long with rent and deducting the TDS U/s 194IB.

Now, my question is that he can file ITR 3 as business income?

Thanks in advance.

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210636 Points Joined July 2016

TDS deducted u/s. 194IB, so better to file ITR 2 with rent income u/h. 'IFHP'

GST CENTRE

92 Points Joined September 2017

in this case it allows to deduct only 30% from gross value. but he is spending the around 60% from his gross value to facilitate the electricity charges, security, etc.

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

even if assessee is carrying on business of renting of property, the income wud be classified under house property and not business, and he will be allowed only to take 30% STD deduction even if actual expenses exceeds 30% of STD ded. he can also take deduction towards mynicipal taxes paid and interest on loan