Rent Paid to Self

Dear S. Kumar Sir,

I must say interesting question......

But it is settled principle that one cannot derive income from himself, I mean there has to be 2 different & identifiable persons in a transaction from which Income can be derived.....Therefore not possible...

Agree u will lose 30% Deduction +Benefit of repayment of Principal  but what u will get by showing it as a property of business is the Depreciation on Building in computing ur Business Income...

Further Interest on Loan u can claim under PGBP like the way u would have done in case of House Property...

Right AMIR.......

Thanks Amir.

That clearly settles the matter.

Good answer Amir .

Thank U members.............

Mr. Amir brother once again a pucca answer.....

Good job....Keep going...

You can claim depreciation and intereset as expenses under PGBP. But you should not book rent as expese in business and offere it as income from house property.

it is called notional rent

please correct me if i m wrong

Dear Varun,

u r rite friend.........

Your consultancy business comes as proprietorship and accordingly you and your proprietorship is same for the purpose of Income tax. You can claim depriciation & Interest as deduction while computing PGBP.

Agree with amir answer

Thanks a lot.  I am NOT a CA but have learnt things the hard way.

Where you gain when you pay rent to yourself is here. In case Annual Rent exceeds Rs.10 lakhs, Service tax  is attracted.  It is a high % compared to Income tax.  But one cannot do Service to Oneself. So even if you pay yourself Rent exceeding Rs. 10 lakhs per annum, service tax is not attractable.  There is therfore a silver lining in this case.

I am indebted to this site, as I learn a lot of new things and interpretations.

Thanks a lot to all of you

Brigadier S Sivaraman (Retd)