property held as stock-in-trade

For holding a property as stock in trade you should be in property business.

Your PGBP should have income from buying / selling properties or constructing and selling properties.

If this condition is satisfied then in my view it is not taxable under IFHP

Dear Sir,

The charging sec of House Property i:e Sec 22 reads as under -

The annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner, other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to income-tax, shall be chargeable to income-tax under the head “Income from house property”.

Any property held as SIT shal not be taxable u/s 22

INCOME OF HOUSE-PROERTY IS ALWAYS TAXABLE U/S 22 EVEN THOUGH 

-

THE PROPERTY IS COMMERCIAL OR RESIDENTIAL;

-

HELD AS STOCK IN TRADE OR FIXED ASSET

-

MAIN OBJECT OF THE ASSESSEE IS TO EARN RENTAL INCOME OR NOT

Originally posted by : sudhir rawal
	INCOME OF HOUSE-PROERTY IS ALWAYS TAXABLE U/S 22 EVEN THOUGH  - THE PROPERTY IS COMMERCIAL OR RESIDENTIAL; - HELD AS STOCK IN TRADE OR FIXED ASSET - MAIN OBJECT OF THE ASSESSEE IS TO EARN RENTAL INCOME OR NOT

yes right but property occupied by the owner for the purpose of business is not included

property occupied for the purpose of business(i.e building of office or factory premises) is diff. from held as stock in trade 

property occupied for business is excluded form house property because same is also not available as a business expense (an owner of house property can't claim deduction of imputed rent)so it is excluded

and as there is a special head for income from house property so the income from house property can't be charged under any other head so it will be chargeable as income from house property

i agree with you 

I agree with Amir

I also agree with Amir...

And, this is practical also... coz, if govt strts charging tax on properties held as SIT... thn it would be a killing time for infra / construction cos to pay tax on properties held by thm for sale....

And, Ajay, if you are talking from the perspective of a Property Investor... thn u'll have to prove to the AO that its ur business to buy n sell properties....

sorry friends

but in my opinion

annual value of house property will be chargeable to tax under income from HP

even if property is held as stock in trade, assessee engaged in the business of letting  out property, even if the company is incorporated for the purpose of owing house property

property held as stock in trade is taxable under the head PGBP as it is used by the assesee for the purpose of business.

YES U R RIGHT RAHUL

The property held by the assesse is not Chargable under the head Income from House propetry,As it is the recurring nature and the regular course of business for selling/buying which is not under the perview of house property.in my opinion and best of my knowledge it is charged to PGBP