Correct head of income - The provisions of section 56 of the I.T. ...

Section 56: Tax Rules for Renting Property & Equipment Together or Separately; Income Classification Explained.

April 28, 2021

Case Laws Income Tax AT

Correct head of income - The provisions of section 56 of the I.T.Act states that in case the property and equipment are let out and if the rent receivable are inseparable, then only the rent shall be taxable as “income from other sources”. In other words, if letting out of property is separable from letting out of other assets, as in the instant case, then the rent for house property is taxable u/s 22 of the I.T.Act, whereas, rent for other assets is taxable either u/s 28 of the I.T.Act as profits and gains of business or profession or u/s 56 of the I.T.Act as income from other sources, as the case may be. - AT

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Correct head of income - The provisions of section 56 of the I.T. ...

Section 56: Tax Rules for Renting Property & Equipment Together or Separately; Income Classification Explained.

April 28, 2021

Case Laws Income Tax AT

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