does property held as stock-in-tarde taxable under the head INCOME FROM HOUSE PROPERTY even if no rent is received on such property held as stock-in-trade.
11 Replies
Rachit
(Analyst)
(913 Points)
Replied 30 April 2010
For holding a property as stock in trade you should be in property business.
Your PGBP should have income from buying / selling properties or constructing and selling properties.
If this condition is satisfied then in my view it is not taxable under IFHP
Amir
(Learner)
(4016 Points)
Replied 30 April 2010
Dear Sir,
The charging sec of House Property i:e Sec 22 reads as under -
The annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner, other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to income-tax, shall be chargeable to income-tax under the head “Income from house property”.
Any property held as SIT shal not be taxable u/s 22
sudhir rawal
(B.COM/PCC/ARTICLE/'O'LEVEL)
(314 Points)
Replied 30 April 2010
INCOME OF HOUSE-PROERTY IS ALWAYS TAXABLE U/S 22 EVEN THOUGH
-
THE PROPERTY IS COMMERCIAL OR RESIDENTIAL;
-
HELD AS STOCK IN TRADE OR FIXED ASSET
-
MAIN OBJECT OF THE ASSESSEE IS TO EARN RENTAL INCOME OR NOT
ViveK
(.)
(312 Points)
Replied 30 April 2010
| Originally posted by : sudhir rawal | ||
 |
INCOME OF HOUSE-PROERTY IS ALWAYS TAXABLE U/S 22 EVEN THOUGH - THE PROPERTY IS COMMERCIAL OR RESIDENTIAL; - HELD AS STOCK IN TRADE OR FIXED ASSET - MAIN OBJECT OF THE ASSESSEE IS TO EARN RENTAL INCOME OR NOT |
 |
yes right but property occupied by the owner for the purpose of business is not included
property occupied for the purpose of business(i.e building of office or factory premises) is diff. from held as stock in trade
property occupied for business is excluded form house property because same is also not available as a business expense (an owner of house property can't claim deduction of imputed rent)so it is excluded
and as there is a special head for income from house property so the income from house property can't be charged under any other head so it will be chargeable as income from house property
dhaval ranpura
(Pursing CA Final)
(47 Points)
Replied 02 May 2010
I also agree with Amir...
And, this is practical also... coz, if govt strts charging tax on properties held as SIT... thn it would be a killing time for infra / construction cos to pay tax on properties held by thm for sale....
And, Ajay, if you are talking from the perspective of a Property Investor... thn u'll have to prove to the AO that its ur business to buy n sell properties....
ViveK
(.)
(312 Points)
Replied 02 May 2010
sorry friends
but in my opinion
annual value of house property will be chargeable to tax under income from HP
even if property is held as stock in trade, assessee engaged in the business of letting out property, even if the company is incorporated for the purpose of owing house property
rahul
(student)
(151 Points)
Replied 02 May 2010
property held as stock in trade is taxable under the head PGBP as it is used by the assesee for the purpose of business.
Admire to CA
(student)
(60 Points)
Replied 31 May 2011
The property held by the assesse is not Chargable under the head Income from House propetry,As it is the recurring nature and the regular course of business for selling/buying which is not under the perview of house property.in my opinion and best of my knowledge it is charged to PGBP
Recent Topics
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
- Clarification on RCM on Rent Payment for QRMP Deal
- Reclaimed itc in gstr9
- Gamification in Accounting Software: Boosting Enga
- I want to knw Hsn code and gst rate of resin produ
- Schedule FA clarification
- Income tax on freelance income from crypto
- ITC temporary reversal and reclaim
Related Threads
CAclubindia
