rental income would fall under head income from other sources
Income of head for rental income of poultry farm
Sr, I was running my layer poultry farm for the last three years and filing my return regularly but this year I have given it on rent, Kindly inform the head of income for the rent received to file the return for assessment year 2017-18. Thanking you in anticipation yours sincerely Mrs. Rafat
Asked 7 years ago in Taxation
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5 Answers
Income from other sources.
THis refers to your reply that rental income would fall under the head income from other sources. Building with other facilities of poultry farm for brooding chicks and laying of birds are given on rent and these are inseparable so it is composite rent.Income Tax department in its FAQ says that entire rent will be charged under the head prifit and gains of business and profession or income from other sources as the case may be. You too have opined that it is income from other sources. Kindly suggest as to which head is appropriate to chooose from business and profession and income from other sources? It is worthwhile to mention that I was filing my return under the head Business and profession before I gave it on rent this year. Taanks and regards
Asked 7 years ago
till last year you were carrying on business of poultry farming and hence filing return under head business and profession
2)since you have given poultry farm on rent it would fall under head income from other sources
Kindly inform the head of income for the rent received to file the return for assessment year 2017-18.
This will come under the head income from other sources.
Kindly suggest as to which head is appropriate to chooose from business and profession and income from other sources?
It is worthwhile to mention that I was filing my return under the head Business and profession before I gave it on rent this year.
This will come under income from other sources in your private capacity.
Business and profession are not the concern now.