House Property - Income Tax Notes Part - 03
INCOME TAX NOTES PART - 03 HOUSE PROPERTY When income is not taxable under the head “House Property” In the following cases, income is not taxable under the head “Income from house property”: 1. If letting is only incidental and subservient to the main business of the assessee, rental income is not taxable under the head “Income from house property” but is chargeable under the head “Profits and gains of business and profession”. 2. Composite Rent: If apart from recovering rent of the building, in some cases, the owner gets rent of other assets (like furniture, plant and machinery etc.) or he charges for different services provided in the building (for instance, security, charges for lift, air conditioning, electricity, water etc.), the amount so recovered is known as “composite rent”. Following is the tax treatment of “composite rent”: a. Where composite rent includes rent of building and charges for different services: In such situations, composite rent is to be split up and