Dear friends,
In case of rental receipts, (Rent from shopping mall) what is the limit for audit u/s 44ab ? 1 crore or 25 lakhs ?
Or is it not subject to audit as it is not an income under the head " profit and gains under business or profession" ?
Remember that rental income is specifically excluded if not assessibe as business income.
Please share your views.
Thanks in advance..
vinodaca74 @ gmail.com
1. The limit for rental income u/s 44AB is 1 Crore
2. It should be considered as an income under profit and gain from business or profession and not under income from house property.
Refer: PFH Mall and retail management vs ITO on 11 May 2007
Equivalent Citation: 2008 110 ITD 337 KOL, 2008 298 ITR 371 KOL
If "renting of malls" is a "business" of a concern , then above 44AB audit is applicable if gross receipts exceeds Rs. 1Cr. If it is not business, then rent will be taxable under head "income from house prop."
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