rent of hoardings

Tax queries 2771 views 8 replies

rental income from letout of terrace of building given for rent for advertisements of hoardings will be charged under which head?????

house property or inciome from other sources????

Replies (8)

DEar Kanveer,

Terrace is only a part of House & hence any rental income will be computed underhead House Property only..

Hi,...

 

As we do sometimes give a part of house on rent, lets say, a room..., so that forms a part of IHP...

 

Similarily here too, its the part of house only, so should be charged under IHP only

If the terrace is let out, it will be income from HP.

 

Income from hoarding will be IFOS if any of the two conditions are fulfilled:

1. Its being let out by a person other than owner.

2. The contract is for for putting up a hoarding, not for renting out the roof/part of building/land appurtenant thereto.

Terrace let out for advertisement Hoardings.....

it is only part of Building .. House Property....

but waiting for different opinions.......

refer to a case law: [2000] 244 ITR 1 (CAL.) HIGH COURT OF CALCUTTA Mukherjee Estate (P.) Ltd. vs.Commissioner of Income-tax Y.R. MEENA AND R.K. MAZUMDAR, JJ. IT REFERENCE NO. 220 OF 1993 MARCH 7, 2000 it states that if assessee has an agreement to rent his terrace to the party then it would be income from house property but if he has an agreement to rent haording or build tower then it will be income from other sources. in the referred case assesse has no agreement and therefore even after his claim of 30% SD is allowed by the Commissioner (appeals), ITAT reversed the same and CIT u/s 256 confirms it.and the assessee refused to claim 30%.

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Thanks to G.K..

Originally posted by : C.Balaji
Thanks to G.K..

 

Can't accept.... Credit goes to one of my caclubindia friends Ritesh Kothari

dear it is computed as IOS head. due to not let out  whole roof.it is an agreement.


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