Rent

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swati (Querist)
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13 July 2012 Were should i show rent received from land and building, in which head of income?
And what would be the effect if Plant and Machinery, Furniture etc are insepreble with building.

Ravindra Srinivasa

Ravindra Srinivasa (Expert)
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14 July 2012 Income from Land & Building shall be accounted under "income from house property"

If plant & machinery, furniture etc., are inseparable and included in one rent agreement as land and building let out, then income deriving from such property shall be classified under house property. However, if the value of plant and machinery, furniture and fittings are considerably high, it is better to have different agreement and account accordingly.