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Composite Rent = Rent for house + Rent for facilities

 

Definition of Composite Rent

It is Rent received for house as well as for facilities provided with the house like lift, gas, water, electricity etc

Example:-Fully furnished house given on rent having Furniture and AC installed

 

Taxablity

Only portion of rent attributable to house is taxable as Income from House Property

Portion attributable to facilities is taxable as Income from Other Sources

 

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Example

 If the owner of property charges from tenant  rent 20000 pm for furnished house,( 18000 for House and 2000 for AC )

18000 will be taxable as Income from House Property and 2000 as Income from Other Sources

 

Note:-

If the letting of business can not be seggregated from letting up of assets ,it is taxable under PGBP Income

Example:-Hotel Business 

 

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 12 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.