income from rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2010 a person have office building in which he is running own business.. after that he took office on rent and his own office is same given on rent .... then in which head, rent received from letout of own office..

further if he will sale after two year of own office. then capital gain is taxable in long term or short term...

when he was running business in own building then he had been taking deprecition same.....

please solve the querry.

warm regards,

Nischint Kumar Somani

Nischint Kumar Somani (Expert)
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07 September 2010 income of rent will be taxable as business income..

and if you are claiming deprecation on the same..it will be taxable as shorterm capital gain irrespective of the years for which u held.

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2010 could rent from office building is chargeable under the head house property? and dep u/s 32 can not be claimed by the assessee..

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SANJAY TALATI

SANJAY TALATI (Expert)
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07 September 2010 Sec. 22 of the Act provides that the annual value of property consistig of any building or lands appurtenant thereto of which the assessee is the owner shall be subject to Income Tax under the head "Income from House Property" provide such property or any portion of property is ot used by the asseee for the purposes of any business or profession carried on by him, the profits of which are chargeable to Income Tax.

Hence, the Income from rent would not be taxed under the head Income from House property.

Futher, the capital gain arises on the sale would be STCG. Opening WDV less sale price would be STCG.