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Other Income vs Business Income

Tax queries 694 views 20 replies
@ sabyasachi mukherjee, which car is used for production dear.

Is there a rule that the item has to be used for producing finished good? What about laptop and software leasing? 

Furniture is also included. It is not used for production of goods.  

https://incometaxmanagement.com/Pages/Tax-Ready-Reckoner/GTI/Other-Sources/Income-from-letting-out-of-Machinery-Plant-Furniture-Section-56-2-ii.html

Is there an exhaustive list of items that can be leased out and income treated as income from other sources.

  • Income from the rental of equipment, machinery or equipment owned by the taxpayer (Section 56(2)(ii)).
  • Income from rental of machinery or furniture with buildings to which the rental is closely related (Section 56(2)(iii)).

https://www.bankbazaar.com/tax/section-56-of-income-tax-act.html#:~:text=Income%20from%20the%20rental%20of,56(2)(iii)).

I can treat information technology equipment such as laptop, server as equipment.  

 

Sir better raise separate query for your every doubt?
It's business income but considering his income from salary/ Other sources it's better to categorize properly.
It's not a business income @ sabyasachi mukherjee. Do not put incorrect replies on every post.


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