Vinod (CA in Practice) (445 Points)
13 November 2012Dear friends,
In case of rental receipts, (Rent from shopping mall) what is the limit for audit u/s 44ab ? 1 crore or 25 lakhs ?
Or is it not subject to audit as it is not an income under the head " profit and gains under business or profession" ?
Remember that rental income is specifically excluded if not assessibe as business income.
Please share your views.
Thanks in advance..
vinodaca74 @ gmail.com
DDDDDD
(.)
(176 Points)
Replied 13 November 2012
1. The limit for rental income u/s 44AB is 1 Crore
2. It should be considered as an income under profit and gain from business or profession and not under income from house property.
Refer: PFH Mall and retail management vs ITO on 11 May 2007
Equivalent Citation: 2008 110 ITD 337 KOL, 2008 298 ITR 371 KOL
CA Mangesh Chitale
(B. Com. A.C.A. DISA (ICAI) DIRM (ICAI))
(245 Points)
Replied 14 November 2012
If "renting of malls" is a "business" of a concern , then above 44AB audit is applicable if gross receipts exceeds Rs. 1Cr. If it is not business, then rent will be taxable under head "income from house prop."
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