Maruthamuthu Kalaimani (SR Accounting Solutions - Proprietor) (79 Points)
06 June 2012Rent received from Commercial Building is chargeable under the head House Property ?
If it is the main source of income i.e., he doing it as a businesss can we chargeable under the head business or profession?
Please clarify this
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 06 June 2012
Even if the busines is of letting out of house properties on rent, the income would still be chargeable under the head Income from house Property.
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 06 June 2012
Since Rental income is arising from the House Property only, and a special head of Income has been prescribed for the HP Income, you have to show it under the head IFHP.
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Neha sharma
(-)
(1257 Points)
Replied 06 June 2012
Income from Commercial Property is to be shown under head Income from House Property only and not under any other head of Income
sajid
(Auditor)
(214 Points)
Replied 07 June 2012
No, you can not show the income from rent, under the Head of Business Income.
Maruthamuthu Kalaimani
(SR Accounting Solutions - Proprietor)
(79 Points)
Replied 07 June 2012
Thanks All of U
varun
(a)
(25 Points)
Replied 07 June 2012
Where the investment made by the assessee while constructing the commercial complex seems to be abusiness investment, the rental income earned from the building as a natural consequence shall be business income.
CASE LAWS DETAILS
DECIDED BY: HIGH COURT OF ALLAHABAD, IN THE CASE OF: CIT v. Goel Builders APPEAL NO: ITA No. 127 of 2005, DECIDED ON May 24, 2010
varun
(a)
(25 Points)
Replied 07 June 2012
Where a building is constructed as a commercial complex under a planned business activity, with all facilities, the income therefrom shall be assessable as business income and not as income from house property - CIT vs Goel Builders [2011] 331 ITR 344
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