Other Income vs Business Income

If a person buys a car and puts it to rent, will it be considered business income or other income?

Replies (20)
Quick Summary
This discussion clarifies whether income from leasing assets like cars or IT equipment is considered business income or income from other sources. While initially debated, the consensus leans towards treating such leasing income as 'Income from Other Sources' (IFOS), particularly when the individual is salaried and not running a formal business. The key distinction is that these assets are not typically used for producing finished goods, unlike traditional plant and machinery in a manufacturing business.

Obviously business income

plant and machinery are  classified in other income. why not a car?

also what about IT equipment?

Income from other sources
Other income vs business income
We know this already @ sabyasachi mukherjee

Is the final answer income from other source for things like car leasing and IT equipment leasing?

@ Amit Agarwal,

But, Your query is not clear...

What is that person's actual business...??

Is that car is his own use or company use...??

is that car is Own Board or T-Board...??

Also required some other clarity...??

Without clarity we can't reply assuming...


And You are start the query with Car Rent (without clarity) Also ask another question as same way like without clarity...

The person is salaried. he wants to supplement his income by buying a car (or IT equipment) and leasing it to a company. Will this be treated as income from other sources?   

Will this be treated as income from other sources?

Yes , it's can be shown under IFOS...
Here car is not plant and machinery
Yes You are exactly correct Mr Sabyasachi Mukherjee Sirrrrrrrrr
It's not used for the purpose of producing finished goods
Yes You are exactly correct Mr Sabyasachi Mukherjee Sirrrrrrrrr

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