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Income tax on rental income received from Hostel

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Kartik

CMA

138 Points Posted on 14 November 2021

Dear Sir/Madam

We are running Hostel and let out majorly to students and charging only rental on monthly basis. No other facilities like fooding etc provided by us.

Please guide whether such rental income is chargeable under House Property or Business.

Replies (2)

Quick Summary

This discussion explores whether income generated from renting out rooms in a hostel, primarily to students on a monthly rental basis, should be classified as income from House Property or Business income for tax purposes. While House Property might seem a practical fit, the theoretical possibilities of both classifications are being considered.