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Under what head of income???

sabitha (entreprenur) (181 Points)

01 March 2013

If an asset(Land and building) is leased or rented by an company , how is that rental income treated? under what head? what are the deductions available and how to save tax on such income?? Read more at: /experts/ask_query.asp

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7 Replies

CA MANISH AGRAWAL (Practice) (539 Points)
Replied 01 March 2013

Rented income tax under PGBP or income from other soures.

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Sanjay Singh Rana (CA) (208 Points)
Replied 01 March 2013

Hi Sabitha, in case of renting of land or building (unless rent is composite rent), income will be calculated under income from house property i.e as per the provisions of sec 22 to 27

and for available deduction visit the given link

https://www.simpletaxindia.net/p/income-from-house-property-income-tax.html

thanks :)

Sanjay Singh Rana (CA) (208 Points)
Replied 01 March 2013

Where letting of building is inseparable from letting of machinery, plant and furniture and in such cases rental income received from the building is to be assessed under the head "Income from other sources" or "Income from Business & Profession".i.e in case of Composite Rent , refer the given link for more detail.

https://taxmantra.com/composite-rent-taxability-act/

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sabitha (entreprenur) (181 Points)
Replied 01 March 2013

is the rental income taxed differently for individuals and companies????

Sanjay Singh Rana (CA) (208 Points)
Replied 01 March 2013

No in both cases income will be calculated as per provision of section 22 to 27 no difference is there.

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sabitha (entreprenur) (181 Points)
Replied 01 March 2013

for a real estate firm is land an asset or a commodity???can u elaborate???

Sanjay Singh Rana (CA) (208 Points)
Replied 01 March 2013

For real estate land is stock if it is purchased with the intention of selling it at profit.

But where, land or building purchased for keeping it for business use like for running office or for staff/employee accomodation it will be treated as Asset.