A firm has a building and it is registered in the name of x (a working partner as firm cannot purchase in its own name). It is let out indeed such firm did not use it for business purpose. Now under which head such rental income shall be Taxable? My assertion is, it is taxable under the head income from other sources because to be chargeable a income under the head house property,the assessee should be owner of the house property but in our present case as firm can not purchase a house property in its own name,it is registered under a partner 'X' if so my assertion is correct,is partnereship firm has always can not have income from house property?
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Income from house property
Replies (1)
If the premises is bought and owned by an individual and rented out in his own name, then it shall be income from house property in the name of the individual and not the firm. Or the individual shall rent out the premises to the firm, and the firm in turn rent out to others, then the subletting income of the firm shall be charged under the head income from other sources.
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