Income from house property

1. In case of let out properties

    

1. 30% of the net annual value; and

2. Interest paid/payable for acquiring/constructing, etc. of the property

2. In case of self occupied (including deemed self-occupied) residential house properties

1. 30% of net annual value (in cases where net annual value is determined at nil, no deduction as such would be available); and

2. Interest paid/payable for acquiring/constructing, etc. of the property as under :
   

@ Mohan: sorry Mohan ji, u have not specifically answered my querry...............

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.

well i was advised by my CA friend that there is some case law overruling the issue.............can anyone provide me that???

Originally posted by : CA Mukul Mittal
	well i was advised by my CA friend that there is some case law overruling the issue.............can anyone provide me that???

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.

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.