No. You have to show this income under house property.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Income head for rent of poultry farm
I was running a layer poultry farm and filing returns under business and profession for the last three years in form 4.
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This year I have given it on rent. Can I file the return of 2017-18 in Form 4 taking the rental income under the head profit and gains of business and professionAsked 8 years ago in Income Tax
This refers to your reply regarding rental income of layer poultry farm falling under the head income from house property.Poultry farm building and other facilities for brooding chicks and laying of birds have been given together on rent and these are inseparable so amount received is composite rent. Income Tax Department in its FAQ says that entire rent will be charged under the head profit and gains of business and profession or income from other sources as the case may be. Nothing is charged to tax under income from house property. I have also got a reply from kaanoon.com saying that rental income would fall under the head income from other sources whereas you have opined to show this income under house property.
Contradictory views have been expressed. Kindly give an exhaustive reply to come to definite conclusion.
Thanking you in anticipation.
With regardsAsked 8 years ago
Hi,
As per the scenario mentioned by you, you have let out Poultry Farm building along with other facilities and you are receiving a composite rent for the same.
Also, in my opinion, this Composite Rent looks like non-separable (i.e the Tenant cannot accept the Poultry Farm Building without other facilities you have offered). In such a case, this Income should be taxed as either Business Income or Income from Other Sources.
However, if you feel the Rent is separable, then the portion of Rent that is attributable to the Building shall be taxed as House Property Income and the remaining rent can be treated as Business or Other Source Income.
Dear Sir,
If it's a composite rent for property and INSEPARABLE ASSETS, it should be in business Head or other sources.
Now the question arises, whether it should be in business Head or other sources? To answer, it's very subjective to choose one of them. Generally business Head is selected if there are multiple properties given on rent and other income is selected for a single property.
Please feel free to revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Sir property is on whose name which is rented out. Also is it a agricultural land or not. If it is agricultural land then treatment is different.
As per our view it should be under other sources.
The rented out property{poultry farm} is in my name and is on agricultural landAsked 8 years ago
Hi,
If you are in the business of letting out properties, it will be treated as Business Income. Otherwise, it will be treated Income from Other Sources
Then sir I will check and reply you as the same can be considered under agricultural income. Can you mail us on modani005@gmail.com
Hello Sir,
Considering the information provided by you, in my opinion it is preferable to show the above income as income from Other Sources.
1. No requirement of Balance Sheet.
2. Form is easier to fill and less details are required.
3. All the basic expenses to be claimed by you (if any) can be claimed therein.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
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