we have a shop which is in my uncles names and is given on rent. I want to know if this income will be classified as income from house rent? or income from other sources?
secondly is this income subject to deductions like taxes paid to muncipality etc?
It will be taxable under income from house property. You may claim 30% deduction.
It will be taxable under income from house property.
Deduction of Municipal taxes Tax paid during the year is available. Deduct the Municipal taxes paid from Gross Annual value. Then, claim adhoc deduction 30% of Net Annual value.
Net Annual Value =Gross Annual Value - Municipal taxes paid during the year
O P Bagla & Co LLP
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