Income under which head - house property or pgbp

Dear Friends 

A person is have rental income from various flats which he owns in his own name. Will he be assessed under income from house proporty or income from business and profession (letting out) . Also please suggest some tax planning tips in such cases .

Thank you so much.

Regards

Ashish Gupta

"Chant Hare Krishna and be happy"
हरे कृष्ण हरे कृष्ण कृष्ण कृष्ण हरे हरे || हरे राम हरे राम राम राम हरे हरे||

 

 

Replies (12)

under income from House property

i suggest for business & profession because of he had business to let property

It is taxable under the head house property even in case of business
Thank you so much. It's income from house property.
Rental income from house is taxable under head house property and standard deduction 30% is allowwed

agree with above

Thanks

Ramanui

 

definately it will come under income from house property

House property income always tax under head House propertyeven if he has busines of leasing.

Its income from HP. However, there are some conflicting judgments given by HC and SC. some say HP. Some say BP. Ex: PVR Cinemas case..i dont remember the judgement. Under normal circumstances its HP. As far as tax planning is concerned,  u will get benefit for property tax paid, 30% std deduction and Int and principal on loan...

Agreeed with ashok....There are many conflicting judgementrs regarding this case.But most prevelant is that to show such income under income from house property

house Property with 30% std dedn

Income from House Property: - or Income from Business (?)
 Azim ganj Estate (Pvt) Ltd V/s CIT
 (2013) 352 ITR 82 (Calcutta) High Court
Construction Business - Rental Income from unsold flats Assessable as Income
from house property – SS.14 & 22.

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