Please Help: Income Tax
Posted Date : 18-Sep-2013 , 03:09:11 pm | Posted By: CA Nagam Devi Kumar
Category :
Income Tax | Answers :
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Comments :
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my query is Income House property, the assessee is having site and let out to the tenant condition to that the temporary shed should be erected by tenant only. in this situation Can you say income from house property or Other sources, if it is under other sources, I think we can claim interest on loan which was used for acquiring site. please clarify |
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Answers:
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 Answer by: Vaneet Gupta |
| Income from Other sources
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| Answer by: |
| Income from Other Sources
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| Answer by: SUBHASH KUMAR JHA |
| According to section 23 of Income Tax Act rent income will be taxed under the head house property if following condition are satisfy :-
a.assets must consist of building and Land appurtanent there to
b.assessee must be the owner of the property
c.assets must not be used for the purpose carried on by them
now in your case point a & b is satisfied
and if property is not being utilised for the purpose of business then income will be treated under House property and interest paid to acquire the property will be allowed as deduction u/s 24(b)
and if property is being utilised for the purpose of business then income will be treated under the head PGBP and here also interest paid to acquire the property will be allowed as deduction.
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| Answer by: SUBHASH KUMAR JHA |
| According to section 23 of Income Tax Act rent income will be taxed under the head house property if following condition are satisfy :-
a.assets must consist of building and Land appurtanent there to
b.assessee must be the owner of the property
c.assets must not be used for the purpose carried on by them
now in your case point a & b is satisfied
and if property is not being utilised for the purpose of business then income will be treated under House property and interest paid to acquire the property will be allowed as deduction u/s 24(b)
and if property is being utilised for the purpose of business then income will be treated under the head PGBP and here also interest paid to acquire the property will be allowed as deduction.
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| Comments |
| Posted By : |
10-Oct-2013, 01:53:50 |
| It all Depends whether letting of land is the business of the assessee or just for Investment purpose, if its business it should be considered as PGBP, if it is Investment, it should be considered as IFOS. If it is considered as business activity Interest can be claimed as expense. As Far as Section 57 is concerned it includes that an expenditure is allowed only if it has been incurred solely and exclusively for the purpose of earning income or making profit. In your case if the intention of the assessee to buy land is to earn income, then in my opinion it can be claimed as deduction. |
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| Posted By : CA Nagam Devi Kumar |
19-Sep-2013, 02:39:51 |
| Thank very much Sir Mr.Subhash Kumar Jha, for your elaborate clarification. here, still my doubt about land (Vacant land) which is not having any structure but it is given on rent condition that the tent should erect whatever the structure he wants. in this scenario, will it amount that the only land has been given on rent, If so I hope, we can claim interest on loan u/s 57.
please give your comments. |
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| Posted By : SUBHASH KUMAR JHA |
19-Sep-2013, 10:38:59 |
| According to section 23 of Income Tax Act rent income will be taxed under the head house property if following condition are satisfy :-
a.assets must consist of building and Land appurtanent there to
b.assessee must be the owner of the property
c.assets must not be used for the purpose carried on by them
now in your case point a & b is satisfied
and if property is not being utilised for the purpose of business then income will be treated under House property and interest paid to acquire the property will be allowed as deduction u/s 24(b)
and if property is being utilised for the purpose of business then income will be treated under the head PGBP and here also interest paid to acquire the property will be allowed as deduction. |
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