21 August 2013
My clienh has a fully furnished Hotel.This hotel is given on lease to a third party.Lease rent received shall be taxed under which heading? Please reply.
21 August 2013
If the client has given the hotel on rent for some reasons like financial hardship or any other temporary reason and has intention to return back to the hotel business after some time, then treat the lease rent as income from Business
If the client has not intention to return to the business, then treat the income as income from other source.
CAclubindia
