20 January 2011
Y has built a house on a leasehold land. He has let out the property and claims income from house property under “Other sources” and deducted expenses on repairs, security charges, and insurance and collection charges in all amounting to 40% of receipts. State the head of income under which the receipt is to be assessed and comment
20 January 2011
According to Section 27, a person becomes a deemed owner of the Property , if he comes to have control over the property in part performance of a contract of the nature referred to in Section 53A of the Transfer of Property Act or by virtue of such transactions referred to in clause(f) of Section 269UA(taking property on lease for not less than 12 years)
In the given case, the assessee becomes a deemed owner and on account of the same the Income will be chargeable under the head "Income from House Property " the deductions as available u/s 24 only shall be claimed from such income.
CAclubindia
