Rental income from factory land & building only
This query is : Resolved
03 August 2011
I would like to know if the Partnership Firm is having a Factory Land & Building and given to another Firm and getting Rental Income after TDS.
The Income Tax is payable on ;
[1] Income From house property
Less : Municipal Tax & 30%
(Without Depreciation & Int. on Capital)
or
[2] Income from Rent
After Depreciation & Int. on Capital
Please give us your valuable advice in this regard.
Regards
Venkat Rao
The Income Tax is payable on ;
[1] Income From house property
Less : Municipal Tax & 30%
(Without Depreciation & Int. on Capital)
or
[2] Income from Rent
After Depreciation & Int. on Capital
Please give us your valuable advice in this regard.
Regards
Venkat Rao
03 August 2011
DEAR VENKAT,
FOR INCOME FROM HOUSE PROPERTY, THERE IS A SEPARATE HEAD FOR INCOME TAX PURPOSES I.E. INCOME UNDER THE HEAD HOUSE PROPERTY. IN YOUR CASE, THE RENTAL INCOME FROM FACTORY LAND AND BUILDING WILL BE TAXABLE UNDER THE HEAD INCOME FROM HOUSE PROPERTY. DEDUCTIONS AS ELIGIBLE U/S 24 SHALL ONLY BE ALLOWED LIKE 30% AND INTEREST ON LOAN TAKEN FOR THAT BUILIDNG.INTEREST ON CAPITAL SHALL NOT BE ALLOWED.
FOR INCOME FROM HOUSE PROPERTY, THERE IS A SEPARATE HEAD FOR INCOME TAX PURPOSES I.E. INCOME UNDER THE HEAD HOUSE PROPERTY. IN YOUR CASE, THE RENTAL INCOME FROM FACTORY LAND AND BUILDING WILL BE TAXABLE UNDER THE HEAD INCOME FROM HOUSE PROPERTY. DEDUCTIONS AS ELIGIBLE U/S 24 SHALL ONLY BE ALLOWED LIKE 30% AND INTEREST ON LOAN TAKEN FOR THAT BUILIDNG.INTEREST ON CAPITAL SHALL NOT BE ALLOWED.
03 August 2011
As per section 22 building includes factory also
you need to show the income from house property and need to calculate
1] Income From house property
Less : Municipal Tax & 30%
(Without Depreciation & Int. on Capital)
Interest on loan can be claimed
you need to show the income from house property and need to calculate
1] Income From house property
Less : Municipal Tax & 30%
(Without Depreciation & Int. on Capital)
Interest on loan can be claimed
04 August 2011
If you have leased out Factory Building with the Plant and Machinery it can be treated as a business of leasing. Accordingly you can claim all expenses and depreciation from the leasing business as business expenses and the income can be shown as business income.
16 September 2011
Thank you for your valuable advice.
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