Question from Mr.Sunil Thacker's forum

Q	This is for Mr. Sunnil Thaacker. I have a query on Indian tax related matter. I had bought a property in Delhi, India 3 years back which I am now willing to let out on lease. I would like to know the tax implications that may arise in India. Thank you. (Posted on 26/11/2006)
A	Under the Indian Income Tax Act, 1961, leasing of property can be taxable in two forms. It can be taxed under the head “Income from House Property” under section 22-27 of the Income Tax Act or it can be taxed as “Business Income” pursuant to section 28 of the same Act. If you treat the income as one from House Property, you are eligible to a flat deduction of 30% and you do not need to maintain any books of accounts. Whereas in the case of Business Income you are entitled to deductions only on‘actual’ expenses and you may be eligible to claim depreciation. Thanks. Sunnil Thaacker
Experts Home   GoDubai Home     Close