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Rental income from aircel for tower on terris

CA SUNIL SURI (chartered accountant) (345 Points)

30 July 2013

Rental Income of Rs.5500 per month received by assessee from Aircel for set up a Tower on the terris of his house where he resides..... Whether such Income is "INCOME FROM HOUSE PROPERTY" OR "INCOME FROM OTHER SOURCES" ?? Assessee also pays Municiple tax Rs.8000 per annum.

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3 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 30 July 2013

It will be income from other sources because he has not rented out the whole of terrace to the aircel.

Wait for others to reply.

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CA SUNIL SURI (chartered accountant) (345 Points)
Replied 30 July 2013

thanks MIHIR.....

Now If it is an Income from other sources, then can he get deduction of expenditure of municipal tax paid under sec 56 ?? becoz before set up of tower, he was not liable to pay municiple tax ??

Mihir (Wealth Manager) (5293 Points)
Replied 30 July 2013

If municipal taxes became payable due to the towers of aircel on the terrace, then assessee should be able to claim this deduction. But it also depends on the rent contract whether the assessee or the aircel will be liable to pay municipal taxes.

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