can any one tell me whether rent recceived from commercial or industrial property is eligible for deduction of 30% under income from house property?????
CA Mukul Mittal (CA in practice) (384 Points)
07 August 2011can any one tell me whether rent recceived from commercial or industrial property is eligible for deduction of 30% under income from house property?????
mohan
(articles)
(135 Points)
Replied 07 August 2011
In case of let out properties
30% of the net annual value; and
Interest paid/payable for acquiring/constructing, etc. of the property
In case of self occupied (including deemed self-occupied) residential house properties
30% of net annual value (in cases where net annual value is determined at nil, no deduction as such would be available); and
Interest paid/payable for acquiring/constructing, etc. of the property as under :
CA Mukul Mittal
(CA in practice)
(384 Points)
Replied 07 August 2011
@ Mohan: sorry Mohan ji, u have not specifically answered my querry...............
Suraj Agarwal
(Self Practitioner in Income Tax & GST)
(782 Points)
Replied 07 August 2011
Hello Mukul,
Deduction of 30% can be claimed for the rent income from the commercial property. The basis is that the income from the commercial Premise is assessable under the head of House Property & Deduction is given on the income of house property.
CA Mukul Mittal
(CA in practice)
(384 Points)
Replied 07 August 2011
well i was advised by my CA friend that there is some case law overruling the issue.............can anyone provide me that???
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 11 August 2011
Originally posted by : CA Mukul Mittal | ||
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well i was advised by my CA friend that there is some case law overruling the issue.............can anyone provide me that??? |
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Then your case must be involving the issue of composite rent., where let out of property can not be separated from the let out of other assets.
Sanat kumar
(Chartered Accountant)
(265 Points)
Replied 11 August 2011
Hi Mukul,
Rental income from Residential/commercial/industrial house property is assessable under the head "Income from House property". So you can claim deduction u/s 24(a) from Commercial/ industrial house property.
In case of composite rent, there may be two situations:
1. Inseparable Rent: If composite rent consists rent of building and other assets and it is inseparable, then the income is taxable as Business income or Other source income.
2. Separable Rent: If composite rent consists rent of building and other assets and it is separable, then the income is bifurcated as Income from House propety and Other sources.
*Inseparable means: The tenant will not accept the letting of one without the other.
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