Akram (C.A.FINAL) (136 Points)
16 December 2009An assessee who get rent from any communication company like realience, vodaphone etc for the using of the roof of a building( tower was set on that roof ) . he is presently show this income under the head house property and deduct tds of rent.
Can it is use of building??., or he will show it his income from other sources...???? plz sugest.
Max Payne
(employed)
(2574 Points)
Replied 16 December 2009
If its not his own house, then it is always IFOS...
If it is his own house.... then see what the agreement is.
a) If it is to let/lease out the part or whole of the roof, it will be income from HP.
b) If the agreement provides the "rent" for just giving permission for setting up the tower, then it will be IFOS
shreyas
(Articled Assistant)
(45 Points)
Replied 16 December 2009
| Originally posted by :akram | ||
| " | An assessee who get rent from any communication company like realience, vodaphone etc for the using of the roof of a building( tower was set on that roof ) . he is presently show this income under the head house property and deduct tds of rent. Can it is use of building??., or he will show it his income from other sources...???? plz sugest. |
" |
If income is derived by rent of any house property then it must be chargeable under house properrty head as there is seperate head of income and not in B/P head. See in case of developers of buildings income fronm rent is taken in house property of the properties treated as stock-in-trade
Ravinder
(Sr. Accounts Officer)
(155 Points)
Replied 16 December 2009
i think this will be assumed as income from other source
triumph-CMA
(Chartered Accountant)
(503 Points)
Replied 17 December 2009
Why to charge under other sources
Specify.
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 17 December 2009
It shall be charged under income from house property.
CA Parag Jani
(BCom CA DISA Forensic Auditor)
(288 Points)
Replied 17 December 2009
It will be charged under Income from House Property because "Roof of building" is a part of the building itself! We are letting out the "roof" viz. the building & hence income to be charged as Income from House Property.
Robin Kumar Gupta
(profession)
(179 Points)
Replied 17 December 2009
Income from house property. (Section 22 - Income tax act)
According to above definition such income should be taxable under the head income from house property, there is no reason that it could be charged under IFOS.
NARENDER PAWAR
(CA final Student)
(337 Points)
Replied 17 December 2009
rent income is taxable under the head "income from other sources"
if the communication company take whole room with roof on rent than income is taxable under the head " income from house property"
Robin Kumar Gupta
(profession)
(179 Points)
Replied 17 December 2009
Kindly go through the file attached which is High court Decision on the same issue
CA Rahul Khatter
(Chartered accountant)
(97 Points)
Replied 17 December 2009
yes it should be chargeable income under head income from house property ...
and the assess must be the owner ..
of land and building as per charging section of house property
Gaurang Desai
(CA FINAL & CS Inter Student)
(123 Points)
Replied 17 December 2009
heu dude
it is the commercial use of roof of the building so, it is not to be accounted in the IFHP, it should be treat in IFOS
triumph-CMA
(Chartered Accountant)
(503 Points)
Replied 17 December 2009
So, According to the judgement given by the Hon. High Court (attached by Robin) it is clear that if roof of any building is building is provided on rent to set up a mobile tower the income must be taxed under the head House Property and not unedr IFOS.
The decision further states that if roof or any part is provided for advertising then
(i). If only roof is provided for setting up hoarding etc
taxable under House Property.
(ii) Hoardings on roof are let out
under IFOS.
Bharat Khurana
(Student)
(153 Points)
Replied 19 December 2009
roof is a part of house property so it is taxable under the head income from house property
NARENDER PAWAR
(CA final Student)
(337 Points)
Replied 19 December 2009
| Originally posted by : NARENDER PAWAR | ||
 |
rental income is taxable under the head "income from other sources" roof is the part of house so it is treated as rent received from house & deduction allowed 30% u/s 24(a) & company should deduct tds @ 10 % |
 |
CAclubindia
