I have a green land (other than a 100% Self occupied house) in Town and within Municipal area. I have constructed a lodge (given to student on rent) on the said land in 50% area and getting Rental income. On rest 50% area of green land i am growing flower ( ...) and selling it & earning money. (purchaser of these flowers sell it to worshippers in the Temple for worship.)
Please determine the heads of income ? Thanks.
The income from flower cultivation can be termed agricultural income...
However, for the lodge, it depends on your intention whether you want make income from the business of the lodge, or merely want to derive rent..
IS THE income of a lodge taxable under income from house property? --
A lodge, like a hotel, can get itself assessed under the more agreeable head of income `profits and gains of business' if it is able to establish that its operations involve much more than bare letting of rooms. Provision of the services of attendants, room service, furnishing of the room, television, telephone, and so on, would all aid the assessee in this endeavour.
https://www.thehindubusinessline.com/mentor/2003/02/10/stories/2003021000361100.htm
Also see
https://ksalegal.org/2009/03/real-estate-transactions-–-some-important-issues-–-income-tax-act-1961/
CIT v. Pateshwari Electrical & Associated Industries (P) Ltd. (2006) 282 ITR 61 (All) (After considering Shambhu Investments) Letting out of all the rooms of a property, used as a guest-house, by the assessee to a bank to be used as a training centre was a part on running of the lodge business and, therefore, income from such leasing was assessable as business income and necessary expenditure incurred thereon was allowable as business expenditure.
CIT v Sarabhai (P) Ltd. (2003) 263 ITR 197 (Guj.)
When property has been let out not only as property but with services which is a complex letting, the income cannot be said to be derived from mere ownership of house property but may be assessable as income from business. If the owner of a property carries on upon the property some activities which result in profits and gains arising, not from the ownership of the property but from the owner’s use thereof, letting various services to the tenants, those profits and gains may be chargeable u/s. 28 as income from business, apart from the assessment u/s. 22 in respect of income from house property.
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