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Taxability of Rent recd. - post TDS

Tax planning 924 views 2 replies

Asheesh

25 Points Posted on 11 February 2010

Hi,

I have leased out my property to a Company, which pays me Rs.15300/- p.m after deducting TDS @ 10% on the agreed rent amount of rs.17000/- p.m.

I fall in the highest tax-bracket.

Need advise on how the same would be treated in my hands, and what Tax do i need to pay on it.

Thanks.

Replies (2)

niki_1079

CA Practice

279 Points Posted on 11 February 2010

Add 17000*12 into your other income then calculate tax payable on total income. Then make adjustment for TDS from Tax payable. Remaing amount would be your tax liability.

Amir

Learner

4016 Points Posted on 11 February 2010

Dear asheesh,

Taxability will depend upon the couse in which property is letout I mean if u have simple letout the property & rent is only in respect of property & not for anyother thing like furnitute, etc then

Rental Income will be taxable under Income from House Property from which u can deduct Municial Taxes, Standard Deduction of 30% will also be allowed & Any interest on capital borrowed for the purchase/construction of property can also be deducted..

If letting out of premises is part of business operations income from such premises is business income, then u can deduct all legitimate expenditure incurred for rearning such income including Municial taxes, interest on borrowed capital, etc..

For taxability Niki has correctly sugested..