Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 21 October 2009
Arka
Look in case of your own property ,,there is nothing related to your business ...it is just an individual contract between you & staff. It is just like if your staff taking room on rent outside .So it is your persaonl income.....
And in case of staff quarter , it is the asset for ur company & company also get the deduction for expenses on repair , maitainence of quarter & also get the deduction of depreciation.........
Arka Bose
(None)
(313 Points)
Replied 21 October 2009
| Originally posted by :Deepika.R. | ||
| " | The assessee is not letting out the building property for the sake of letting out or for the sake of earning income. The property is let out in order to enable the carrying on of the assessee's business in a better and efficient manner. The act of letting out is quite incidental to the carrying on of assessee's business. Therefore, income is incidental to the business activity carried and assessable u/s 28 of Business Income. THerefore actual expenses towards repairs and depreciation are allowable. * CIT Vs. National Newsprint and Paper Mills Ltd. * ACIT Vs. Hindustan Machine tools Ltd. * CIT Vs. Admiralty Flats Model |
" |
Sir Gupta,I can understand that what you are trying to convey,but this earlier post which i quoted above,confuses me more,
it says that assessee is giving rent for the continuation of his business,so the income must be assesable
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 21 October 2009
Arka
This is what i m telling you...........that Staff quarter is your business property & all the expenses related to repair & maintainence will be allowed in business income............
And the incom generated from abive rent is shown as other income & taxable under business income.......
Hope ther is no doubts.........
Arka Bose
(None)
(313 Points)
Replied 21 October 2009
yep thanks very much now
one possibly last doubt
So if i rent my own property to the staffs of my business for the continuation of my business,it will be taxable under Income from House Properties?
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 21 October 2009
It will be income from business
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 21 October 2009
Arka
It is your personal incoem & taxable under Head House Property ..............that inceom has not any relation with your ibusiness........
Nitin Grover
(CS)
(1228 Points)
Replied 24 October 2009
Dear Friend
Actual exp is allowed in business premises not in House Property
in this case 30% of your rent receiveing if its NAV then (30%) Deduction is allowed and Municipal Taxes are allowed only if it have paid by you only i.e not by tennaunt and paid in the year or before filling return date if expense of same year
Thanks
Nitin Grover
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