Income from rent

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SUNIL BHOOTRA (Querist)
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17 September 2011 my company is private limited company and the company take land on lease rent on 10000/- per month, now make a new office on the land and give on rent of Rs. 5000/- to other, what is my tax liabilities and in which head it will be taxable.

Yogesh Agarwal

Yogesh Agarwal (Expert)
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17 September 2011 Generaly sub leasing is chargeable under the head of 'Income from Other Sources' because the ownership is must, however if the assesee' busines is to take the property on leasing and subsequently sub leasing the same then it is chargeable under BP. If the assesee is taking the building under the agreement for more than 12 years then he wil b the 'deemed owner' under section 27 (iiib) and acordingly sub leasing wil b charged under the HP.