Mr. X took a property on rent for his residential purpose on 1.4.2020. However, the property was not fully occupied by him. He let out the property to his friend at ₹ 15,000 p.m. from 01.04.2020 to 31.03.2021. Mr. X is of the view that income from subletting of property is taxable as Income from House Property. Find out whether his view is correct?
A. Correct, as any income from a house property is taxable under the head Income from House Property.
B. Incorrect, as Mr. X is not the owner of the property let out by him.
C. Incorrect, as income from sublet-ting of a property is not taxable
D. Incorrect, as income from sublet-ting shall be taxable under the head income from other sources.
Answer:D
Mr. X took a property on rent for his residential purpose on 1.4.2020. However, the property was not fully occupied by him. He let out the property to his friend at ₹ 15,000 p.m. from 01.04.2020 to 31.03.2021. Mr. X is of the view that income from subletting of property is taxable as Income from House Property. Find out whether his view is correct?
A. Correct, as any income from a house property is taxable under the head Income from House Property. B. Incorrect, as Mr. X is not the owner of the property let out by him. C. Incorrect, as income from sublet-ting of a property is not taxable D. Incorrect, as income from sublet-ting shall be taxable under the head income from other sources.