Which income head and itr to be select??

ITR 169 views 4 replies

WE HAVE A OWN SHOP AND WE ARE GIVEN THIS SHOP ON LETOUT TO SOMEONE. SO WE RECEIVES RENT OF RS 70000 PER MONTH. SO MY DOUBT IS WHERE TO SHOW THIS INCOME AND WHICH ITR WILL BE APPLICABLE. 

THANKS IN ADVANCE

Replies (4)

ITR1  .......  The rental income can be assessed under 'Income from HP'

OK

THANKS SIR 

My question will be: can a commercial shop get considered as "House Property"?

Is there some definition of House Property wherein it mentions for residential purposes?

In that case then ITR1 may not be correct form, maybe ITR3 is the correct form?

Income from house property

The annual value of property, consisting of any buildings or lands appurtenant thereto of which the assessee is the owner, other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him, the profits of which are chargeable to income tax, shall be chargeable to income tax under the head "Income from House Property".

      The annual value of any property you own is taxable under the head ‘income from house property’. While there are a few deductions available from this income, income from a property is not taxable under the head ‘income from house property’ when...

  1. The property is used for one’s own business or profession.

  2. The property is self-occupied.

  3. It is income from a farmhouse.

  4. It is the property income of a local authority.

  5. It is the property income of a university or an educational institution.

  6. It is the property income of a trade union.

  7. It is property held for charitable or religious purposes.

  8. It is the property income of a political party.

  9. It is the property income of an approved scientific research association.


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