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House property

07 November 2019

Income earned by assessee engaged in the business of letting out of properties on rent would be taxable under which head??

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3 Replies

jayesh chauhan (articled) (80 Points)
Replied 07 November 2019

Profit and gain from business and profession

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Kapadia Pravin (17254 Points)
Replied 07 November 2019

Merely showing house property as stock in trade , rent income does not fall under Business income.

As per your query if it's single house property then rent income will be under the head Income from house property.

Besides, thanks to the judiciary,
over time and after many cases, certain key principles have emerged as templates for characterisation of rental income under the head PGBP.

( this is repeat query asked on 24.10.2019 under different heading)

sabyasachi mukherjee (27129 Points)
Replied 07 November 2019

@ jayesh has asked for letting of properties on rent.
It's a general question.
Depending on the motive.
If I invest my capital in purchased acfew house properties.
The assesse may earn his income from serving others providing professional services.
Now if he treats it as business income but for that purpose he may have seperate PAN ,TAN or a same PAN.
Now,IT DEPENDS how to interpret it .