Z took an auditorium on rent for ₹ 70,000 per month. The rent of the building was ₹ 40,000 and of the furniture, fittings and furnishings was ₹ 30,000. These two lettings are not separable. In this case:
A. Rental Income will be taxed as business profits.
B. Rental Income will be taxed as business profits or income from other sources.
C. Rental Income of building will be taxed as house property income and ₹ 30,000 as business profits or income from other sources.
D. Rental Income will be taxed as in-come from other sources
Answer:B
Z took an auditorium on rent for ₹ 70,000 per month. The rent of the building was ₹ 40,000 and of the furniture, fittings and furnishings was ₹ 30,000. These two lettings are not separable. In this case:
A. Rental Income will be taxed as business profits. B. Rental Income will be taxed as business profits or income from other sources. C. Rental Income of building will be taxed as house property income and ₹ 30,000 as business profits or income from other sources. D. Rental Income will be taxed as in-come from other sources