housepropery

- Income from of teneme.

Para 87.4 Income-tax bare letting acc
ntofof.
is notfrom building
received paying-guest
said lo be deriv.od
income a furnished be
Where one(e.g, endered.
Hiring of com mplex- a complex the incomecannotand services ren mere
ut he subject hired is
out deposit vault), facilities .
Similarly, wh.
safe of business.
the inY,
well equi
Ownership
pped of
theatre,
house property
but because as income from
be assessable including
the building), a
Income in such caseis may out (eg,ajute
factory
is let
I rent ofth ilding, theheowner
commercialcomplex complex business. recovering Dr
as income
from from services ovidedi
assessed for different the a
rent-Ifapartor he charges etc.)
is as foll.reC
87.4 Splittingup ofa composite air conditioning, rent ws -
assets (likefurniture) security, of the composite

.
ofother for lift, ser.
etsrent(forinstance, charges rent".
The tax treatment andcharges fordifferent rent forthes
(hit

Duilding as"composite rent of building a

S Known
rent inclhudes house property
Where composite the owner
of a composite
gets composite
rent
is to
besplit value
of annual
um is
up and 1hoper.

sunlr

Se
to the tenants, in theform
rendered be as
services (such ward facilities. etPovi
conditioning)-If
air as services to assessed electricity
is
well
for
is attributable
to the use
of
which relates
property
to rendition
for
ofthe
watch and or under the
scavenging. profession"
hs chan
22.Theamount or ome
water, arrangement
and gainsofbusiness
supply of "Profits of other r
of lifts,
the head out assets
to tax under out of building and
letting
of
of machinery (like
sources. - If there
is letting
from other rent is rent ofletting and parcellan
are notseparable form part lhe sa
2.Where compositeand the two lettings and the twolettngs that letting ofone
is not
the building the sense
furniture)
and also letting of areinseparable (in is taxable as iable
eitherCCeptak
furniture thensuch income sum receivablef busines
transaction or
the twolettings oftheother), is two
letting This rule applicableevenif
party without
to the other othersources. out ofother as
incomeorincomefrom letting ndtha
is fixed separately. outofbuilading andand of other asser
ssets and
lettings isrentofletting of letting
rent is letting out building to
t the otherpa rty without the
3. Where composite there oneis acceptable
that then
two lettingsare
separable-If
(in the sense
letting
along
with
with car), ino
melrom
separable out of building from
twolettings are
outofthe other;
for instance letting "Income
under the head as business income or income f rom
e
letting is taxable other
of either rent
out building assets is taxable tfrom his tenant for
i

letting out of other receives composite

from letting if the assessee
is applicableeven
sources. Thisrule bytw
a houseproperty is owned

. more
two lettings. 26-If if a pronert
by co-owners |Sec. 26 is applicable Wned
87.5 Property owned are Section
known asco-owners. conditions are satisfied
such persons if the following
persons, 26 is applicable land appurtenant thereto
by co-owners.
Section
of or building and
building
must consist
1. The property
owned by two or more persons.
or deemed to be
2. It is owned are definite and ascertainable.
of the co-owners
co-owner in theincome of the
shares nr
3. The respective
thentheshare ofeach shall be included in th
aresatisfied, tal
Iftheseconditions from house property)
under the head "Income should be noted-
(as computed The following points
income of each such person. not be assessedasan association of perse rsons.
income, co-owners shall
1.In respect of property of self-occupied property [see para 91.11i
treatment in respect
2. The concessional tax entitled to such relief.
is
applicable
asif each such person individually
vis-a-vissection
22-Tax levied under section22 is tax on income
87.6 Principle ofmutuality
tax on house property.
from house property and it is not
and refreshment facilities exclusivels
Ifa clubowns ahouse property
it providesrecreational

facilities arenot available to non-members. The club is run

to its members and theirguests. Its
forall their expenses and are not entitled
on 'no profit no loss'basis in that the members pays
to any sharein the profit.Surplus,if any,is used
formaintenance and development of the club.
the surplus from the
The business of trust is governed by principle of mutuality.It is not only
of income-tax, even the
from the levy
activities of the business of the club that is excluded