shikha gupta (Accountrs Executive) (26 Points)
31 August 2011Can a partnership firm having income from renting business use cash basis of accounting???
Nitin Garg
(CA FINAL Article Trainee B.com)
(171 Points)
Replied 31 August 2011
No.. Income from rental income ia taxable under the head income from house property.. i.e accrual method of accounting ifs followed..
It makes no difference if the business of form is to let out house properties...
Dheeraj
(Learner)
(1100 Points)
Replied 31 August 2011
All the rental income are taxable under head HOUSE PROPERTY, no matter whatever the business of firm is.
and under head house property income is chargeable on accrual basis i.e whenever rent become accrued, it add in the rental income
Amit Gupta
(Loosening Myself)
(1508 Points)
Replied 31 August 2011
| Originally posted by : shikha gupta | ||
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Can a partnership firm having income from renting business use cash basis of accounting??? |
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I think u r asking about accounting and no Accounting standard or company law provision or Income tax section prohibits accounting on cash basis
CAclubindia
