Treatment of Rental Income in Pvt. Ltd. Co.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2009 We have a commercial property in the name of a Pvt. Ltd. Company plet let me know that can we treat the rent as business income of the company if not than how we will treat the running expenses of the company out of rental income because rent is the only income of the company.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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26 November 2009 There is a case law of Shambu Investement of the honourable Supreme Court regarding treatment of rent received as income from huose proerty even if commercially let out.

So you will have to tax it as income from house property only and deduction u/s 24 @ 30% of rent income will be available

Lalit aggarwal

Lalit aggarwal (Expert)
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26 November 2009 i agree with Mr. Aditya

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Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2009 In this case what will be treatment of running and operating expenses of the company like salary to staff and directors, travelling, telephone and other misc. expenses

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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26 November 2009 Agree

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)
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26 November 2009 Usually commercial property is let out alongwith some other amenites also like Generator ,elevator,common secrity gurd etc etc, and rent is charged together for all if it so, it can be chargeble under the head "income from other source" and deduction for the expenses can claimed under the head