Any rent from building in industrial park shall be taxed as business income under the head “Income from Business and profession” not under the head “Income from House Property”, therefore no standard deduction of 30% of NAV shall be allowed

INCOME TAX - (Circular No. 16/2017) Lease rent from letting out buildings/developed space along with other amenities in an Industrial Park /SEZ - to be treated as business income, dated 25.04.2017.

 

The issue whether income arising from letting out of premises/developed space along with other amenities in an Industrial Park/SEZ is to be charged under head ‘Profits and Gains of Business’ or under the head ‘Income from House Property’ has been subject matter of litigation in recent years. Assessees claim the letting out as business activity, the income arising from which to be charged to tax under the head ‘Profits and Gains of Business’, whereas the Assessing Officers hold it to be chargeable under the head ‘Income from House Property’……………. to read more click here

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