It will be treated as Income from House property.

As the terrace is let out and rent is earned in exchange as consideration.

Also go through the terms of contract in details in the Agreement - see after reading that what interepretations can be made out.

Further as cross verification find out as to TDS is deducted under which Section.

income from house property..................yaar its not like that u dont know the head then charge it to ios...ios has some income which is prescribed n not more than that.........if ny thing comes beyond the limit of ios then it will not be taxable .........jiska koi mai baap nhin use ios main dalna hian aisa rule nhin hian..................................................how ever in above case it is clearly rent n taxable under head IHP

saurabh please carefully go through the case law in this link (Mukherjee Estate (P.) Ltd. vs Commissioner Of Income-Tax on 7/3/2000) https://www.indiankanoon.org/doc/1656132/ and tally the answer of Mr CA Narayanan.

 I agree with Mr. Narayanan. Its comes under H.P.  

Dear All,

Still i am feeling it will be Income From Other Sources......

After Reading case law: [2000] 244 ITR 1 (CAL.) HIGH COURT OF CALCUTTA Mukherjee Estate (P.) Ltd. vs.Commissioner of Income-tax Y.R. MEENA AND R.K. MAZUMDAR, JJ. IT REFERENCE NO. 220 OF 1993 MARCH 7, 2000.

As it is saying ...

case law: [2000] 244 ITR 1 (CAL.) HIGH COURT OF CALCUTTA Mukherjee Estate (P.) Ltd. vs.Commissioner of Income-tax Y.R. MEENA AND R.K. MAZUMDAR, JJ. IT REFERENCE NO. 220 OF 1993 MARCH 7, 2000

it states that if assessee has an agreement to "rent his terrace to" the party then it would be income from house property but "if he has an agreement to rent haording or build tower" then it will be income from other sources.

in the referred case assesse has no agreement and therefore even after his claim of 30% SD is allowed by the Commissioner (appeals), ITAT reversed the same and CIT u/s 256 confirms it.and the assessee refused to claim 30%.

so Dear all if u have an agreement to rent roof then only u claim 30% SD. otherwise not.

hope u all found me crisp and clear.

As above word saying if he has an agreement to rent haording or build tower" then it will be income from other sources.

and saurabh toshniwal question is

he is having only one house

a telecom company install a tower on the roof of his house in which he residing at rs. 30000 p.m.

Here he is not letting out entire Terrace or Roof but only he is allowing to Install Tower and I hope you i clarfied as i felt.

If anybody not agrree with my sugesstion then , kindly revert me with reason.

it is treated as ios

This income will be considered under Income from Other Sources...

Because if u want to claim this income as Income from House property the property must be in a condition to live and roof is so important.. Here Top floor has no roof and living condition for people.. So the income from this Tower will be considered as income from other source only...

No Doubt... 

Dear Friends,

                 In the explanation given to IHP, there is a statement that income from lawns, gardens, parking place etc, attached to buildings are taxable as IHP. It just says that building should be capable of self-occupation. Iam sure terrace can be used for self-occupation.

                  In the case quoted by me earlier, the decision was that hoardings are not treated as part of building. The person recceived charges on letting out of hoarding boards. He never let out the terrace for rent in that case. Hence, the decision was given that hoardings are not part of building. But in the present case, terrace or roof  is only let out on rent. Definitely roof forms a part of the building. Hence it has to be taken to IHP

i think the income will be taxable under the head income from other sources only

Posted On 14 September 2010 at 17:40

Dear Saurabi,

    It has to be taxed under IHP Only. Reason for the same is that roof is an independant portion. Assume a small family is residing in the roof for a rent of Rs.2000, would it be advisable to take the income to IFOS. IF THERE IS A HOARDING ON THE ROOF, INCOME FROM THE SAID HOARDING MUST BE TAXED UNDER IFOS.(PLS REFER MUKHERJI ESTATE(P) LTD VS CIT case). REASON BEING THAT RENT IS GIVEN ONLY FOR THE HOARDING AND NOT FOR THE ROOF.

  But in ur case, the whole roof must be let out to the telecom provider for constructing tower. So it has to be taxed under IHP

**** Agree with above****

Originally posted by : saurabh toshniwal
	suppose a person is residing in his house & he is having only one house a telecom company install a tower on the roof of his house in which he residing at rs. 30000 p.m. now under which head of income this income will be shown

INCOME FROM OTHER SOURCES.....100% SURE............THE SAME QUESTION WAS ASKED BY ME TO MY TEACHER DURING PCC COACHIING AND HIS REPLY WAS "OTHER SOURCES"

Originally posted by : Balram Begari
	Dear All, Still i am feeling it will be Income From Other Sources...... After Reading case law: [2000] 244 ITR 1 (CAL.) HIGH COURT OF CALCUTTA Mukherjee Estate (P.) Ltd. vs.Commissioner of Income-tax Y.R. MEENA AND R.K. MAZUMDAR, JJ. IT REFERENCE NO. 220 OF 1993 MARCH 7, 2000. As it is saying ... case law: [2000] 244 ITR 1 (CAL.) HIGH COURT OF CALCUTTA Mukherjee Estate (P.) Ltd. vs.Commissioner of Income-tax Y.R. MEENA AND R.K. MAZUMDAR, JJ. IT REFERENCE NO. 220 OF 1993 MARCH 7, 2000 it states that if assessee has an agreement to "rent his terrace to" the party then it would be income from house property but "if he has an agreement to rent haording or build tower" then it will be income from other sources. in the referred case assesse has no agreement and therefore even after his claim of 30% SD is allowed by the Commissioner (appeals), ITAT reversed the same and CIT u/s 256 confirms it.and the assessee refused to claim 30%. so Dear all if u have an agreement to rent roof then only u claim 30% SD. otherwise not. hope u all found me crisp and clear. As above word saying if he has an agreement to rent haording or build tower" then it will be income from other sources. and saurabh toshniwal question is he is having only one house a telecom company install a tower on the roof of his house in which he residing at rs. 30000 p.m. Here he is not letting out entire Terrace or Roof but only he is allowing to Install Tower and I hope you i clarfied as i felt. If anybody not agrree with my sugesstion then , kindly revert me with reason.

AGREED

it will be taxable under head house property

tower is situated on the building

income from building is taxable under house property

Dear Rupesh,

                     With due respect to ur professors answer, i would like to ephasize on one point. Terrace and roofs form part of the building, whereas hoardings do not for part of the building.

                       My father has let out his property on rent to a bank. On the top of the ATM (ie)roof top),the bankers have kept one satellite. We take the full income to IHP only.We have been doing this for the past several years Its not logical to seperate the ATM rent and satellite rent.

It has to be HOUSE PROPERTY...