Renting personal property to own business

NO IMPACT.......because in his ROI rent is his income in personal capacity but exps. in proprietor capacity...so both will get offset....

His profit will reduceby claiming the rent expense..and income can be shown in House property against which he avail take Interest deduction,

Originally posted by : Akshata
	His profit will reduceby claiming the rent expense..and income can be shown in House property against which he avail take Interest deduction,

yes,agreed............

Originally posted by : Akshata
	His profit will reduceby claiming the rent expense..and income can be shown in House property against which he avail take Interest deduction,

What is the way for A to claim Interest deduction? An illustration will help with reference to ITR4.

hi sunder

he can avail deduction of interest on loan taken (if any) irt house property

say, 30000 is being paid as rent p.m. then

Gross Annual Value (not considering municipal value/fair rent/std rent) for whole year = Rs. 360000.

Less : municipal tax (if paid by him,say) = Rs. 10000

Net Annual Value                                    = Rs. 350000

Less : Deduction u/s 24 

a) 30 %                                                  =   Rs. 105000

b) Interest                                              =   Any Amount

Thus, Net Income from House Property   =  (350000-30%-Interest)

Similary he can claim Rs. 360000 as business deduction.

Hope this was clear.

how can you pay rent to your self??? 

I guess one needs to enter into a leave license agreement in order to rent a premises to someone. How does one prepare a rent agreement when the both the parties are one and the same person?

TDS is to be deducted from rent paid. How does one account for the TDS when the rent giver and rent receiver is the same?