individual given his premises to college for the purpose of hostel.
what are the tax implications on the same.
CA NAMRATA KAYARWAR (297 Points)
29 July 2023
RAJA P M
("Do the Right Thing...!!!")
(128042 Points)
Replied 29 July 2023
RAJA P M
("Do the Right Thing...!!!")
(128042 Points)
Replied 29 July 2023
Musrath Shaik
(175 Points)
Replied 31 July 2023
The tax implications of an individual giving his premises to a college for the purpose of a hostel can vary depending on the tax laws and regulations in the specific country or jurisdiction where this transaction takes place. Since tax laws differ from country to country and can be subject to change over time, it is essential to consult with a qualified tax professional or accountant who is familiar with the relevant local tax laws to get accurate and up-to-date information. However, I can provide some general points to consider:
Rental Income: If the individual is receiving any form of payment (rental income) from the college for using his premises as a hostel, this income will likely be subject to taxation. The individual may need to report this rental income on their tax return and pay taxes on it based on the applicable tax rates for rental income.
Deductions and Allowances: Depending on the local tax laws, there may be deductions or allowances that the individual can claim to offset the taxable rental income. These could include expenses related to the maintenance and upkeep of the premises
For further more detailed information on this topic visit: Taxability of Sale of Developed Plot under GST
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