Please guide to me on below mentioned query:-
A Corporate society owns a school. it has given this to someone on contract for running the school. Against this contract, society receive Rs 7.00 Lakhs per month, while the contractee keeps all the receipt he received from students.
Is same will be taxed under PGBP or what..?? Aslo under HP, 30% is standard deduction agaisnt Rent received, is this provision can be applied here ?
please guide the Tax treatment in the hands of Corp Society.
Its not just property that is given for rent......... but school business given for conductance.......... PGBP
First of all Thank you very much sir for answering my query.
Sir, i have some further doubts, please enlighten me.
What if, whole contract formed in such a way that out of 7 lakhs, some is allocated as Rent of School Building and balance amount as conductance of school. is this is possible?
if yes, then can we claim 30% standard deduction on Building rent under HP, and balance is chargable under PGBP ?
1. Yes.
2. Yes..... Correct........ Congrates.....
CAclubindia
