Under what head does Machinery Rental income be shown?

nature of income depends upon the nature of business in which firm involves. If business of the firm is to give the property to other on rent, then such income will be covered under the head Business income, otherwise under the head income from other sources. Expenditure can be claimed to incur such income.

regards,

ratan

 AGREE WITH Mr. RATAN

i dont think it can be shown as IFOS , since its a residual charging head . Leasing of machinery is a business or incidental to business and should be generally shown as PGBP

I dont agree wid mr.rajeev, owin 2 d fact dat d practical approach MUST be considerd, befor decidin d head of income.. Again fr d argument d Firm may hav rented d machinery only fr a part of d year n may evn hav done so on a trial basis fr dat particulr year.. Since v r unawar of d actual situatn a decision is nt apt.. As fr leasin bein a incidental busines 1 cn argue by gvin a situatn whereby a co. Involvd in diggin up of land lost a contract or gt a contract cancelld, therby renderin its 2 machines idle fr 6 mnths. Thus d co. May decid 2 pt dem on a short term lease, therby earnin sm income on d same.. Since ths wud nt b d co's "regular" busines, v shud opt fr IFOS.. Again speakin in mr. Rajeev's favor, if rentin is d only income of d Firm, dn it shal b cnsiderd as hs busines n taxabl undr PGBP...