A Company with the A.Main Object of running a Hotel, could not run a Hotel, hence, let its building on rent and returned it a Business Income. Letting out is one of its C.Other Objects. Department treats as Income from House Property. Is it wrong to admit rents as Profits and Gains of Business or Profession ?
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Taxability of rental income as pgb/p
Replies (1)
As per Charging Sec 22 of I.T. Act,1961
The annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner or deemed owner shall be chargeable to income-tax under the head Income from house property.
It will make no difference whether renting is the business of the assessee or not.
In other words, on satisfaction of above conditions, rental income from building or land appurtenant thereto will be charged to tax under the head “Income from house property”, even if the assessee is doing the business of renting of properties.
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