Under which head rental from building is taxable ?

Under the Income Tax Act, rental income received by a taxpayer from a property that includes a building or land appurtenant to the building, of which they are the owner, is chargeable to tax under the head "Income from house property." This means that the rental income earned from such property will be taxed separately from any other income earned by the taxpayer.

However, if a tenant sublets the property and earns rental income from it, that income cannot be charged to tax under the head "Income from house property." Only the rental income earned by the owner is charged under this head. In such cases, the rental income received by the tenant from subletting the property will be taxable under the head "Income from other sources" or under the head "Profits and gains from business or profession," depending on the nature of the transaction.

When it comes to rental income earned from a shop, the same tax treatment applies as for any other rental income from a property. If the shop is a building or land appurtenant to the building, and the taxpayer is the owner of that property, the rental income from the shop will be taxed under the head "Income from house property." However, if the shop is owned by someone else and is rented out to the taxpayer, then the rental income earned from it will not be taxed under the head "Income from house property."

please refer https://www.taxcomply.in/post/tax-implications-of-composite-rent if you are letting property with any other asset or services

In conclusion, understanding the tax implications of rental income is essential for property owners and tenants alike, as it can have a significant impact on their tax liability.

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