Master TDS & TCS Provisions with Critical Issues. Register Now!

Rental Income Of Apt Owners' Associations-Car Parking Spaces

Ramesh Bhat (Professional) (25 Points)

29 June 2011

Is the rental income earned by a registered Apartment Owners' Association by renting vacant car parking spaces within its premises taxable?

Reply
Follow
Share

9 Replies

kamal kishor sen (STUDENT Rajasthan) (2156 Points)
Replied 29 June 2011

yes it is taxable under BPV head

plz clarify if i m wrong

thanks

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

valji (Accounts manager-MBA) (2150 Points)
Replied 29 June 2011

yes it is taxable agree with above

1 Like

Ramesh Bhat (Professional) (25 Points)
Replied 29 June 2011

I am at a loss after reading what is stated on this web site:

https://www.commonfloor.com/articles/income-tax-and-rebate-for-apartment-owners-association-814.html

Please read on.....and let me have your views?

Vikas (CA) (1135 Points)
Replied 29 June 2011

It is taxable under business or profession as the same is not a house property...

CA Mukesh Jain S (Chartered Accountant in Practice) (692 Points)
Replied 29 June 2011

It is taxable under B/P head

Upgrade to CAclubindia Pro. Subscribe Now!

Panduranga Bhat (working) (52 Points)
Replied 29 June 2011

Hi All,

The rental income earned by a registered Apartment Owners' Association by renting vacant car parking spaces within its premises taxable.

Agreed but it is not taxable under business or profession, because the main activity or business of Apartment OwnersAssociation is not renting vacant car parking space.

The rental income earned by the Association is Misceleanoeous. Hence, the income is taxable under the head Income from Othersources.

CA Nikhilesh Singla (CA) (83 Points)
Replied 29 June 2011

yes it ll b taxable under other sources head nt in b/p...

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 29 June 2011

Originally posted by : Panduranga Bhat
	Hi All, The rental income earned by a registered Apartment Owners' Association by renting vacant car parking spaces within its premises taxable. Agreed but it is not taxable under business or profession, because the main activity or business of Apartment OwnersAssociation is not renting vacant car parking space. agreed The rental income earned by the Association is Misceleanoeous. Hence, the income is taxable under the head Income from Othersources.

(Guest)

Hi all

I assume vacant parking spaces is a building since it is located in apartment. Therefore its income is taxable under the head Income from house property.

Thanks