Q: If rent for a building is recieved in kind by the owner, will it be taxable under Income from Property?
Ans: Yes, it will taxable at fair market value under the head Income from Property, except when the building is Agricultural Building, in which case rent will be exempt u/s 41 of the ITO-2001.
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According to Sec 15(2) rent means an AMOUNT recieved or recieable by the owner of land or bulding. The word AMOUNT is not defined in the ITO-2001,hence, its ordinary dictionary meaning has to be taken. According to its dictionary meaning rent also means a QUANTITY (Examples: amount of courage, amount of itelligence) Hence the word amount in the defintion of rent is not limited to rent in money/cash but covers rent in kind too.
ReplyDelete*According to its dictionary meaning AMOUNT...*
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