20 September 2010
An individual has let out space in residential house property for erecting mobile-phone tower wherein the tenant/lesse company has erected tower the cost cost of which is incurred by the tenant. Please suggest if the Rent received would be taxed under the head "income from house property" and if the Standatd Deduction (30%) u/s 24(a) shall be allowable on that, in the following conditions:- 1. the tower is erected on the roof of residential house 2. the tower is erected in the land adjascent to the residential house.
20 September 2010
1. The cost is met by the tenant. Hence it will not forms part of the building. Therefore income is to be offered under the head income from other sources.. 2. Here also the tower belongs to the tenant since they had met the cost. Income may be offered under the head income from other sources.
13 October 2010
Thanks for your suggestions, sir. However somehow i could not understand the logic of bearing cost being the decisive factor for the head of income. Please explain
CAclubindia
