01 March 2013
Issue: A part of a commercial property has been given on rent for use to XYZ. Rent per month is Rs.2,00,000 per month. Assesse is a private limited company & has shown rent income as business income in Income Tax returns for last 2 years.
But now due to huge tax outgo assessee needs advise on the same so that he can save tax on the income.
Is there any tax planning method by which the tax on the same could be saved?
12 April 2013
There are few ways 1) Show it as rental income and take deduction of 30%. 2) You were wrongly showing rent as business income as the nature is not of business as he is not taking other properties on rent and leasing again. 3) Show the rent as hire charges and make 2 agreements one for rental income and other for services deduct the payment made for services from money received for services