income from house property or business income

Others 762 views 3 replies

harishraj

manager

74 Points Joined January 2011

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)

kishore choudhury

article asst.

114 Points Joined November 2008

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

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.
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

CA MAULIK

C.A

937 Points Joined January 2009

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

harishraj

manager

74 Points Joined January 2011

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