Rental income from property as stock in trade
Saurav Gupta (1 Points)
29 August 2018
Rental income from flat held as stock in trade will be charged to House property or Business income ?
1 Replies
Sarath Chandra
(CA Final Student)
(566 Points)
Replied 29 August 2018
Hi Saurav Gupta,
If the assessee is engaged in the business of renting out properties, then the rental income will be chargeable u/h Profits and Gains of Business or Profession.
The head income from House Property comes into picture only if the property held as stock-in-trade was not let out. If the property held as stock-in-trade was not let out within 1 year after obtaining certificate of completion, then the annual value will be nil; thereafter if the said property was not let out, then annual value will be the expected rent u/s 23(5).
Here, you are saying that there is RENTAL INCOME from such property, which implies that the said property has already been let out. So, if the assessee is engaged in renting out properties, then such rental income shall be chargeable u/h Profits and Gains from business or profession.
If the assessee is engaged in the business of renting out properties, then the rental income will be chargeable u/h Profits and Gains of Business or Profession.
The head income from House Property comes into picture only if the property held as stock-in-trade was not let out. If the property held as stock-in-trade was not let out within 1 year after obtaining certificate of completion, then the annual value will be nil; thereafter if the said property was not let out, then annual value will be the expected rent u/s 23(5).
Here, you are saying that there is RENTAL INCOME from such property, which implies that the said property has already been let out. So, if the assessee is engaged in renting out properties, then such rental income shall be chargeable u/h Profits and Gains from business or profession.
Recent Topics
- Ewaybill generation for Return of Goods From Exhib
- A foreign entity engages some persons for doing th
- Property late registration selling now
- REQUIRED DELHI BASED LOGISTICS COMPANY 2 YRS OLD
- Rebate under 87A - STCG right to property
- GST RFD-01
- Profit & Loss Statement Analysis: Gross Profit
- Response to defective return notice in case of 139
- Capital loss for surcharge purchase?
- RCM on certain expenses under Sec.9(3) and 9(4)
Related Threads
CAclubindia
