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Subletting house property after renovations

venkatesh (Student CA FINAL) (49 Points)

14 April 2017

Miss sinotha has a house poperty and let it out to mr.rajesh.Now mr. rajesh has made the HP into 4 partitions and made renovations and provide furniture.whether income to rajesh comes under IFOS or PGBP

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185387 Points)
Replied 14 April 2017

Rental income in the hands of owner is charged to tax under the head “Income from house property”. Rental income of a person other than the owner cannot be charged to tax under the head “Income from house property”. Hence, rental income received by a tenant from sub-letting cannot be charged to tax under the head “Income from house property”. Such income is taxable under the head “Income from other sources” or profits and gains from business or profession, as the case may be.