I would like to know the benefits/reason for splitting rent in an rental agreement into that towards Building and towards furniture
Is there any tax benefits for this ? Or is there some other benefits under any other law ??
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Splitting of rent in rental agreement
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Helloooo.........
As per Income Tax, Rental Income ( From Building and Land Appurtenant) is charge under head HOUSE PROFERTY.
Where as Income from leting Furniture is Taxable under head INCOME FROM OTHER SOURCES or BUSINESS AND PROFESSION.
Spliting happen due to many reason.
(1) compliance of income tax provision, as building rent is taxable under head house property only.
(2) Standard deduction of 30% is allow on income from house property, but no such type of deduction allow in other head.
(3) Lose of BUSINESS AND PROFESSION cant be sett off again INCOME FROM HOUSE PROPERTY , But INCOME FROM HOUSE PROPERTY can be set off against INCOME FROM BUSINESS AND PROFESSION.Sooo spliting hv very deep impact....
THANKS
SHIKHAR
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