Other Income vs Business Income

Page no : 2

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 05 March 2024

@ sabyasachi mukherjee, which car is used for production dear.

Amit Agarwal (13 Points)
Replied 05 March 2024

Is there a rule that the item has to be used for producing finished good? What about laptop and software leasing?

Amit Agarwal (13 Points)
Replied 05 March 2024

Furniture is also included. It is not used for production of goods.

https://incometaxmanagement.com/Pages/Tax-Ready-Reckoner/GTI/Other-Sources/Income-from-letting-out-of-Machinery-Plant-Furniture-Section-56-2-ii.html

Is there an exhaustive list of items that can be leased out and income treated as income from other sources.

Income from the rental of equipment, machinery or equipment owned by the taxpayer (Section 56(2)(ii)).
Income from rental of machinery or furniture with buildings to which the rental is closely related (Section 56(2)(iii)).

https://www.bankbazaar.com/tax/section-56-of-income-tax-act.html#:~:text=Income%20from%20the%20rental%20of,56(2)(iii)).

I can treat information technology equipment such as laptop, server as equipment.

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 05 March 2024

Sir better raise separate query for your every doubt?

sabyasachi mukherjee (27117 Points)
Replied 05 March 2024

It's business income but considering his income from salary/ Other sources it's better to categorize properly.

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 06 March 2024

It's not a business income @ sabyasachi mukherjee. Do not put incorrect replies on every post.

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