Interesting

A person has constructed some rooms on the first floor of his self occupied house and is running P.G. accomodation.

He is also incurring some expenditure like food etc.

Is the income chargeable under the head Income from House Property or Business Income????

And what if he had not incurred any expenditure and had derived only rent from it

Replies (7)

Business income

ha business income only....

how come it be called a business inco me...

 

non seperable rent , and also providing food facility etc must be his business, it call it as business income...

 

if tat is not his business to provide food etc it comes nder other sources...

 

 

I also thik that it come under Income from other source because rent amount is not sepreble with food provide to tenent. If its sepreble then rent amount treated as Income from house property and food prividing Income is treated as Income from other source. If assessee main busines is this then it will be come under head Income from Bussiness and professions. 

It will come under income from other sources

AS IT SEEMS IT PG IS NOT HIS MAIN BUSINESS AND ALSO AMT OF RENT & FOOD ARE NOT SEPRABLE SO IT SHOULD BELONG TO OTHER SOURCE INCOME. IF IT IS POSSIBLE TO SEORATE THE AMT OF FOOD FROM THE RENT THEN RENT WILL BE H.P INCOME AND FOOD AMT BUSINESS INCOME

If the assessee does not merely let-out a property, but also other facilities, it is on par with the activity of a Hotel or  lodging house and hence shall be recognized as a business activity [Manohar Singh(1965) 58 ITR 592]

In view of the above judgement such letting out will be chargeable under the head "Profits & Gains of Business or Profession".

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