Celebrate Freedom with 20% OFF on CAclubindia Pro Subscription. Use Code: FREEDOM20

Rental income from land in a company (only income)

Tax planning 398 views 2 replies

Neha Jain

Chartered Accountant

128 Points Joined March 2011

There is a private ltd company whose only income is from rent earned.

Can I show that income under head PGBP.. or compulsorily it should be shown under HP? which one is more favourable and also can i show director remuneration in expenses. please guide.

P.S. : Income Tax officer disallowed the director remuneration last year.. What argument can i claim.

Replies (2)

NAVIN AGICHA

HELPING HAND

1313 Points Joined April 2015

Income to be shown as house property only. So no deduction as remuneration.

NAVEESH DHAR

ADVOCATE- TAXATION ADVISOR

427 Points Joined November 2011

In my opinion if the co earned rental income from land than it will shown under income from other sources or may be shown under business income and claim all the expenditure including director remuneration as deduction. But if it is earned from house / building than it will be taxable under income from house property and entitled for deduction u/s 24 only.