if a assessee bought a land through lease from others and he gave it as rent to some other person
under which head it is taxable
please sent reply immeditely
22 Replies
Narayanan
(Chartered Accountant)
(189 Points)
Replied 27 December 2010
Rent from letting out land is always taxable as income from other sources...
vasudevan
(.)
(376 Points)
Replied 27 December 2010
This would be a sub-lease and it is taxable under Income from other sources
priyanka***
(IPCC)
(120 Points)
Replied 27 December 2010
wheather income from house property or business or profession?????
priyanka***
(IPCC)
(120 Points)
Replied 27 December 2010
thanks a lot
if u please give a brief discriptttion please...
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 27 December 2010
Not Under House property since Assessee is not the owner and not a Business Income since not incidental to it so the correct head would be Income from other Sources
CA.Lakshmi Ramanathan
(INDUSTRY)
(69 Points)
Replied 27 December 2010
I agree...it is taxable under 'Other Sources'
CA Atul Gangwar
(Coal India manager)
(100 Points)
Replied 27 December 2010
its depends upon situation, if taking lease and then sub leasing the land is on regular basis then it is business income otherwise it will be a income of other source.
income shall be taxable in HP head only when it is a house property not only land.
Dhawal Mohnot
(Practicing)
(449 Points)
Replied 27 December 2010
in my opinion if the assessee is in the business of obtaining lands on lease and then sub leasing it he can treat the same as his business income... else income from other sources seems appropriate..... assessee has a choice of adopting his method of accounting provided the same is consistently followed. Many case laws in this regard U/s.145 of the IT act.
priyanka***
(IPCC)
(120 Points)
Replied 27 December 2010
than k u sivaram sir
but if the assessee has taken the plot on lease from A and constucted Hotel and leased out the same to B and receiving rental income from B and Paying ground rent to A
Dhawal Mohnot
(Practicing)
(449 Points)
Replied 27 December 2010
he can provide it as business income and claim depreciation on the building as well.
CA Atul Gangwar
(Coal India manager)
(100 Points)
Replied 27 December 2010
Hotel is not under the ownership of such assessee hence it will not come in any case in HP head.
CA Atul Gangwar
(Coal India manager)
(100 Points)
Replied 27 December 2010
Income taxable in HP head only when HP is under ownership of Assessee.
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