Please help me out with this question- X operates a petrol bunk on his own land. In his profit and loss account, rental income received from Global Bank who have taken a part of the land of the petrol bunk to set up an ATM has been credited. Should this be reduced from the profit of the petrol bunk business and shown as income from house property? Will your answer change if the land on which the petrol bunk is hypothecated to Global Bank and is under loan?
KEERTHI PRIYA Moderator
Income will be taxable under icnome from other source, as it was not for purpose of residence so not comes under House property.If any loan taken interest expense will be deducted from respective income.
Thank you ma'am