It is about income from other sources and income from property

1. TOPIC:
INCOME FROM PROPERTY

2. RENT
Rent means any amount received or receivable
by the owner of the land or the building for use
or occupation by some other person.

3. RENT CHARGEABLE TO TAX (RCT)
It includes the following:-
Higher of the rent received or the Fair market rent.
Forfeited Deposit.
Any obligation of the owner paid by the tenant.
1/10th
of the advanced not adjustable against the
rent.

4. RENT OF PROPERTIES NOT TAXABLE
It includes the following:-
Any building let out together with plant and
machinery installed there in
Any building whose income is treated as
‘agricultural income’.
Any property which is sublet by the tenant.

5. ADVANCES ADJUSTABLE
AGAINST RENT
The advances which are adjustable against
rent are totally ignored while computing RCT.

6. AMOUTN RECEIVED FOR VACATING
OF PROPERTY
Where a taxpayer receives an amount for the
vacating the possession of any building, such income
less the amount paid by him for taking the
possession of that building shall be deemed as his
income. This will be charged to tax under the head
“income from other sources” in 10 years (starting
from the year in which it is received in equal
portions).

7. ADMISSIBLE DEDUCTIONS
Following amounts shall be deducted from the RCT:-
Repair allowance (1/5th
of the RCT)
Insurance premium paid or payable against property
Ground rent
Cost of borrowed capital
Interest paid on money borrowed by way of mortgage
Rent collection charges which should not exceed 6% of RCT
or which ever is lower
Legal expenses
Irrecoverable rent

8. RECOVERY OF UNREALIZED RENT
Where a deduction has been allowed on account of
irrecoverable rent and later o it is recovered, the
amount so recovered shall be included in RCT of the
tax year in which it is recovered.

9. NON-PAYMENT OF AN
ALLOWABLE DEDUCTION
Where a person has been allowed a deduction on
accrual basis and the same has not been paid within
a period of 3 years, the amount so unpaid shall be
treated as income and shall be included in RCT of
the tax year immediate after expiry of 3 years.

10. PAYMENT OF AN UN PAID
LIABILITY
Where an unpaid liability has been treated as
income and later on paid by the taxpayer, the
amount that has been paid shall be allowed as
deduction in the tax year in which it is paid.

11. LIABILTY IN CASE OF CO-OWNERS
Where two or more persons jointly own a
property, such property shall not be taxed as
associates of persons (AOP). Rather, share of
each person shall be included in his total income.

12. TOPIC:
INCOME FROM OTHER
SOURCE

13. INCOME FROM OTHER SOURCES
The following incomes shall be chargeable to tax
under this head:-
Dividend
Royalty
Profit on debts
Ground rent
Sublet of property by tenant
Any annuity or pension
Any unexplained income

14. Any income from the building which is let out
together with plant and machinery installed
Prize bond, lottery, prize on winning a quiz
Any amount received for exploration of property
Amount received for vacating the possession of
property
Income representing nazrana
Rent from mines
Sale of irrigation water for agriculture
Paper checking fee
Insurance commission received by a person who is
not the employee of insurance company

15. THANK YOU!