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income from house property or business income

Others 773 views 3 replies

 

i provide rooms on monthly  rent (only one room with attach toilet),change bed sheet, clean room, minimum staying period is 3months , no food .how will this be accounted -business income or income from house property .can i claim depreciation if it is business income            - harish

NOTE;

Income from paying guest establishment is business income - Where owner of property is running paying guest establishment, income from property is assessable as business income - Manohar Singh v. CIT [1965] 58 ITR 592 (Punj.).


Replies (3)

There are TWO situation can be confirmed here,which i described as follows:

  1. if the amount of rent and the extra facility amount can be segregated than the receipt from rent will be treated as INCOME FROM HOUSE PROPERTY and the amount he received from extra facility will be treated as INCOME FROM OTHER SOURCES.
  2. if the amount of rent and the extra facility amount can not be segregated than the receipt from rent will be treated as INCOME FROM OTHER SOURCES or BUSINESS INCOME,If ur treating it as business income than you can claim depreciation.

if the above mentioned,ur not thinking it as correct or else ur having any arguements than send a msg .

Thanks

Agree wid MR Kishore ,,the same has been depicted in section 22 of the INCOME TAX ACT ,1961

thank u mr. kishore  

the amount of rent and extra facility  cannot be segregated - is there any specific rule that i should account it as business income or income from other property  only because i get different  kind of tax benifit from each of it


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