Rent from staffs

ARKA

This is your rental income ie. Income from House Property .................& actual expenses like municipal tax will be allowed in computing the income         .................

Hmm so you mean that the expenses that i will incur will be deducted u/h of Profits and gains of Business or Profession but the income itself is not?

I think thr properety which you rented is your own property & which has no link with your business..........is it  ??????????

The income will bw rental income and u will get the deduction of municipal tax paid and 30% of the balance as standard deduction under the head income from house property.

Well,only link is that my staff rent that property and I get paid for that.

https://personal.vsnl.com/arunhomepage/business.htm#guesthouse

In the above link it says that in case of a guest house,i get deductions for any expenses on that.So why not on my property where my staff or employees live?

Arka

Guest house is purely the property of business & purely  use for the business . And your house property is not theproperty of business & might be not use purely for business ......So its income must be taxable under head House Property not under business & professsion........

 hmm thanks for clearing this doubt 

 Are staff quarters properties of business?(sorry i am too noob in this)

you see,i thought giving rent to my staff ,i thought it became a staff quarter.

The assessee is not letting out the building property for the sake of letting out or for the sake of earning income. The property is let out in order to enable the carrying on of the assessee's business in a better and efficient manner. The act of letting out is quite incidental to the carrying on of assessee's business. Therefore, income is incidental to the business activity carried and assessable u/s 28 of Business Income. THerefore actual expenses towards repairs and depreciation are allowable.

* CIT Vs. National Newsprint and Paper Mills Ltd.

* ACIT Vs. Hindustan Machine tools Ltd.

* CIT Vs. Admiralty Flats Model

If any building is purely use for the business then it is the assests of bussiness & you can clim depreciation for that property...............As ou tols Staff quarter is property of business & it will be capiralised under head Buiding & company can claim depreciation for such building.....................

on the other hand , it will be treat as a perquisites for employees .............& inculde in their taxable income....................

thank you very much for that,

I know that it is taxable as perquisites under their salary,

actually here was my problem.

In a profit and loss account,they have credited the Rent from Staff quarters and Debited the municipal tax for the staff quarters 

so the problem is that whether they are to be allowed to get the proper profit required as per IT rules

Arka

You confused me, tell me one thing that , whether thr propety is Staff Qaurters OR  

Is It your flat.............

 Sorry about that,

I need both,as in this case,its the staff quarter

But i also want to know what will happen if I give rent to my staff in my own property(suppose at a concessional rate) will that be a perquisite to the staff?Will the income and expenses be assesed under that business?

As in this case,it is the staff quarters.

But i would like to know about both.

And sorry again for confusing