Income from House Property

Tax queries 1728 views 8 replies

ysd prasad

Accounts officer

250 Points Posted on 04 July 2009

Dear Experts..,

I hav one doubt on income from house property....

I have one Five floors Building and given lease to some people..in that rent payers Bharti Airtel is also one rent payer for the 1st floor and i am receiving rent from Air tel Rs. 25000/- Pm recently Bharti Airtel installed telecommunication towers on the terrace and paying rent Rs. 2500/- pm and also one advertising hoarding fixed by uniads on the terrace of the building and receiving rent 10,000/- pm.. so receiving tower rent and hoarding rent goes to under Income from other sources so now my question is....am i deduct 30% standard deduction on tower rent and hoarding rent In my opinion this tower rent and hoarding rent also coming from my building terrace so we can deduct 30% standard deduction is its right ......? sir pls..........help me....I have to file income tax return.

PRASAD

Replies (8)

Max Payne

employed

2574 Points Posted on 04 July 2009

U cant claim 30% deduction for Tower rent - income from other sources. But u can claim any incidental expense u have incurred for earning this tower and hoarding rent - Such as interest on borrowed funds, repairs and maintenance of the building to use the tower, cutting some trees etc. It might be more advantageous to you actually.

CA. Megha Topiwala

Job

1534 Points Posted on 04 July 2009

yes.. u can claim standard deduction @ 30% on tower rent income also..

Max Payne

employed

2574 Points Posted on 04 July 2009

pls tell me, how we can claim 30% deduction against income from other sources. Tower rent and hoarding rent are not "annual value of property consisting of any buildings or land appurtenant thereto" which is the definition as per section 22 of income from house property. So i am still holding onto my stance that section 24 deductions cannot be claimed against tower rent and hoarding rent... Please engage in debate someone.... its a topic worth pondering over...

RITESH KOTHARI

B.COM FCA DISA(ICAI)

778 Points Posted on 04 July 2009

well u both are right but not concretely putting your point.let me clarify.

first refer to a case law: [2000] 244 ITR 1 (CAL.) HIGH COURT OF CALCUTTA Mukherjee Estate (P.) Ltd. vs.Commissioner of Income-tax Y.R. MEENA AND R.K. MAZUMDAR, JJ. IT REFERENCE NO. 220 OF 1993 MARCH 7, 2000

it states that if assessee has an agreement to rent his terrace to the party then it would be income from house property but if he has an agreement to rent haording or build tower then it will be income from other sources.

in the referred case assesse has no agreement and therefore even after his claim of 30% SD is allowed by the Commissioner (appeals), ITAT reversed the same and CIT u/s 256 confirms it.and the assessee refused to claim 30%.

so Mr.prasad if u have an agreement to rent roof then only u claim 30% SD. otherwise not.

hope u all found me crisp and clear.

thanks