Please Help: Rental Receipt from Cinema Theater
Posted Date : 26-Jan-2015 , 08:25:55 pm | Posted By: CA RAMAKANT
Category :
Income Tax | Answers :
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Comments :
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Assessee has given its cinema theater ( which is ready to use condition ) on rental basis. Whether such rental receipt is taxable as house property income or under any other head |
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| Posted By : |
09-Feb-2015, 12:02:23 |
| If the Rental receipt can be bifurcated then the sum attributable to the use of Cinema Theater will be charged to tax under the head 'Income from house property' and charges for various services will be charged to tax under the head 'Profits and gains of business and profession' or 'Income from other sources' (as the case may be).
Or If the rental receipt are non-separable, entire rent is taxed under the head 'Profits and gains of business or profession' or 'Income from other sources'. |
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| Posted By : Karan Maini |
30-Jan-2015, 10:10:08 |
| The rental income from letting out of cinema theater building shall be taxable under the head income from house property only.The other portion of rental income for cinema theater screen,furniture,fixtures moveable property will be taxable under the head income from other sources. In case the rental income is composite rent in lump sum then the entire amount of rental income shall be taxable as income from house property us 22. |
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| Posted By : ATIT D. SHAH |
27-Jan-2015, 08:02:04 |
| Well what i feel is, if rent comprises of Cinema + Furniture n other things, than it will be income from Business or Income from other sources, however if rent is only of Building than house property, moreover if you rent is seperable than u have to go for House property for portion of building and other sources for portin of Furniture or lift or projector etc. |
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| Posted By : Mahesh G Makhijani |
27-Jan-2015, 11:54:30 |
| It would be taxed as rental Income under the head Income from House Property. As Per Section 22 of income tax act "The annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner, other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to income-tax, shall be chargeable to income-tax under the head "Income from house property".
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