section 24

  • Feb
  • 11

Brokerage expenses not allowed against income from house property

ITAT Mumbai held In the case of M/s. Radiant Premises Pvt. Ltd. vs. ACIT that the phrase rent received and receivable u/s 23, contemplates the amount received for the enjoyment of the property and certain rights in the said property by the tenant. If there is charge directly related to the rental income or for the property without which the rights in the property cannot be enjoyed by the tenant then it can be construed as part and parcel of enjoyment of the property from where rent is received then such charges can be held to be allowable from the rent received or receivable.

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  • Dec
  • 31

Interest on delayed payment in connection of acquisition of property is allowed u/s 24 (b)

Citation of the Case:- Wel Intertrade Pvt. Ltd. vs. ITO (ITAT Delhi), Income tax (Appeal) nos. 2538 of 2010, 1146 of 2012 and 3052 of 2010, Date of Judgment: 14/08/2015 Brief of the Case ITAT Delhi held In the case of Wel Intertrade Pvt. Ltd. vs. ITO that there is no dispute that for purchasing the property […]

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  • Jul
  • 03

Tax Treatment of Composite Rent, Unrealised Rent and Rent Arrears

The  Article covers following topics : 1. Discussion on charging section i.e. section 22 with focus on meaning of various terms viz: Building Land appurtenant to a building Owner Deemed owner Property used for the purpose of business or profession 2. Tax treatment of composite rent : Composite rent i.e. rent of building and charges […]

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  • Jun
  • 25

Loan foreclosure charges are eligible for deduction u/s 24(b)

Citation: Subha Singhvi Vs. ACIT (ITAT Delhi), I.T.A .No.691/Del/2014 [Assessment Year : 2008-2009] Date of pronouncement: 19.06.2015 Brief Facts: 1. The assessee is an individual, who earned rental income from certain properties and claimed deduction for interest on loan paid by the assessee as interest u/s 24(b)of the Income Tax Act, 1961. 2. The A.O., on […]

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  • May
  • 30

Income from House Property- All you want to know

Rental income in the hands of owner is charged to tax under the head ‘Income from house property’. Rental income of a person other than the owner cannot be charged to tax under the head ‘Income from house property’. Hence, rental income received by a tenant from sub-letting cannot be charged to tax under the head ‘Income from house property’.

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  • May
  • 06

SC on Taxability of income from letting of properties (House Property or Business Income)

The appellant-assessee is a company incorporated under the Indian Companies Act. Its main objective, as stated in the Memorandum of Association, is to acquire the properties in the city of Madras (now Chennai) and to let out those properties. The assessee had rented out such properties and the rental income received therefrom was shown as income from business in the return filed by the assessee. Chennai Properties & Investments Ltd vs. CIT (Supreme Court)

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  • May
  • 04

Tax Planning- Income From House Property

1. How is income to be computed, if a property is partly let out and partly self-occupied? Answer. It has to be treated as two residential units and income from each unit has to be computed according to law by allocating common outgoings on a basis proportionate to area of occupation.

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  • May
  • 01

Sultan Brothers (P) Ltd. v. CIT (Supreme Court)

Sultan Brothers (P) Ltd. v. Commissioner of Income Tax’ [1964 (5) SCR 807]. Whether a particular letting is business has to be decided in the circumstances of each case. It would not be the doing of a business if it was exploitation of his property by an owner. A thing cannot by its very nature be a commercial asset. A commercial asset is only an asset used in a business and nothing else. An activity is not business because it is concerned with an asset with which trade is commonly carried on.

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  • Mar
  • 31

Little known schemes u/s. 80C of Income Tax Act

If an individual falls in the 30% tax bracket and has exhausted the maximum limit of Sec 80C, one can save Rs 33,000 in taxes. We runs you through the provisions of Section 80C. However, we highlight those schemes that are little known and which many investors avail of sparingly. Stamp duty and registration charges

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  • Mar
  • 30

FAQs on Income from house property

​Is rental income from sub-letting chargeable to tax under the head Income from house property? ​ Rental income in the hands of owner is charged to tax under the head Income from house property. Rental income of a person other than the owner cannot be charged to tax under the head Income from house property. Hence, rental income received by a tenant from sub-letting cannot be charged to tax under the head “Income from house property”. Such income is taxable under the head Income from other sources.​

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