Sub-letting a pagdi property

Hello,

Rental income in the hands of owner is charged to tax under the head “Income from house property”. Rental income of a person other than the owner cannot be charged to tax under the head “Income from house property”.

Hence, rental income received by a tenant from sub-letting cannot be charged to tax under the head “Income from house property”.  Such income is taxable under the head “Income from other sources.

Thanks for your reply Vishal! I'm refering to Sec 27 whereby if you have a lease of more than 12 years, you are considered "Deemed Owner" of that House Property and accordingly Income from that House is chargeable under "Income from House Property".

Hello Priya
 

Yes in ur case, that person will be treated as deemed owner and is liable to income tax for house rent in the same manner as a real owner. 

Vishal ji we are the first tenent of a pagadi gala in a industrial estate for last 60 years, if i sublet it on rent then shall this income from rent be treated under income form house property, pls guide