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Asked by namish on :Aug. 04, 2018

I have a rented my building to a shopkeeper being…

I have a rented my building to a shopkeeper being 30% of the revenue less purchases of the shop. Do…

I have a rented my building to a shopkeeper being 30% of the revenue less purchases of the shop. Do I charge this income under PGBP or house property?

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Chiranjibi Aug. 04, 2018

Let's narrate the story in this way.

You entered into a contract with a shopkeeper. You contributed capital (building) and as a result are sharing profits with the shopkeeper in the ratio of 3:7.

You have to show this income under PGBP.

However, if you have a housing loan on the property, you can claim deduction of interest of up to Rs 2 lakhs by showing the property under House property. (With no income)

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