in second question : u want to say that it is financial lease not operating lease ( A to B)
M I RIGHT ?
Urgent..............
Page no : 2
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 27 December 2010
| Originally posted by : priyanka*** | ||
 |
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 |
 |
Primarily if letting out of Building is the Business of Assesse then Rental Income is Business Income else othersources .You can claim the Ground Rent as expense in both cases as it is an allowed expenditure
CA Ram
(CA)
(310 Points)
Replied 27 December 2010
it should be taxed under income from other sources.
(Guest)
First of all only land does not satisfy the basic condition to charge it under the head income from house property. It should be attached to and from part of the building to satisfy the basic condition.
Undermentioned answer is based on the assumption that it satisfies the basic condition:
Income from subletting is not taxable under Income from House Property. It is taxable as income from other sources u/s 56.
Exception:
U/s 269 UA(f) if a property is given on lease for a term of not less than 12 years (whether fixed originally or there is a provsion for extension of term and the aggregate period is not less than 12 years), then the person acquiring the right will be the deemed owner of the property.
In your case if the lease is not less than 12 years then under Income from House Property, or
If lease is less than 12 years then Income from other sources.
(To get concept more clear with illustration: Refer V.K. Singhania)
sonu gupta
(sucess )
(95 Points)
Replied 27 December 2010
agree with sivaaram sir
income wiil be charge under other sources,in hotel case income charge in business and rent charge as expense..........
prateek rijwani
(Industrial Trainee)
(125 Points)
Replied 28 December 2010
| Originally posted by : CA.Lakshmi Ramanathan | ||
|
|
I agree...it is taxable under 'Other Sources' |
|
agreed but if the business of assessee is purchasing of land and give it on lease then under PGBP
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 28 December 2010
below lease period of 12 years ........other income
above lease period of 12 years - house property income ( for individual and HUF only)
Recent Topics
- NRO Interest - Taxed at source and in Foreign Coun
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- Where can I find a trusted provider to hire a skip
- GST Invoices Series
- FILING OF ITR AY 20-21
- CLAIMING OF U CLAIMED RCM
- Building construction works
- REGARDING GSTR-9 F.Y 2023-24
Related Threads
CAclubindia
