RESIDENTIAL PROPERTIES USED AS STAFF QUARTERS

[SARAVANAKUMAR GURUSAMY]

Dear Sir,

When the residential properties used as Staff quarters and kept as a business asset and some of such residential properties are kept vacant for the whole year due to the fact that no staff is there to occupy the quarters, whether such property shall be treated as a House Property deemed to be let out for tax purposes. Kindly give your reply.

AI Summary

Clarification Sought on Tax Treatment for Vacant Staff Quarters Classified as Business Assets Under Tax Regulations. A query was raised regarding the tax treatment of residential properties used as staff quarters, which are considered business assets. The issue concerns whether these properties, when left vacant for the entire year due to the absence of staff, should be treated as deemed to be let out for income tax purposes. The question seeks clarification on how such properties are classified under tax regulations when they remain unoccupied.