31 March 2009
A prtivate limited company has ran it business for the last 3 yrs. In the current year after 5 months it decided to stop production and rent out the factory building and plant and machinery on rent 1,00,000 p.m due to economic crisis.
In the assessent of company where this income would be taxable. i.e. as income from house property or income from business and proffesion or from other sources.
Further whether directors remmuneration will be allowed in case the income is from other sources or from house property.
31 March 2009
Income from machine, plant or furniture let on hire are specifically mentioned in the I .T. Act U/s 56, which are included in the income from other sources.
All other provisions willbe applicable accordingly.
31 March 2009
If the business is temporarily stopped rental income is to be assessed under the head " profit and gains of Business/ profession". If the business is permanently stopped the rental income ,being composite rent,should be assessed under the head "Income from other sources".
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