Income from subletting is also income from house property and you can avail of 30% standard deduction as available to income from house property.  In the case of Smart (P) Ltd. Vs Commissioner of income tax, decided in High Court of Delhi, the issue raised was that Assessee earned income by sub-letting premises in its occupation, which was assessed by Assessing Officer as ‘Income from house property’ whereas Assessee claimed it to be assessed as ‘Business income’ on ground that property must be owned by Assessee before rent received therefrom could be treated as ‘Income from house property’ The question to be decided by High Court Whether since Assessee was in full control of property in capacity as a tenant and earned income from sub-letting of house property and there was nothing to suggest that ownership of premises was essential for purposes of levying income-tax. The high court decided in favor of revenue holding that the Assessing Officer was justified. Now, the issue is in the instant case, Assessee for his own reasons wanted it to be assessed under the head business income as probably he wanted more deductions, i.e. expenses on actual basis, to be allowed against the income as against standard 30% deduction available against house property income.  However for other Assessees, who have no such issues and need only flat deduction to reduce tax liability, it makes much sense to take the income as income from house property and avail 30% deduction