LLP rental income under House property or Business Income ?????

[milan bamal]

A new LLP firm named XYZ LLP was formed by two persons. After its formation, the LLP purchased 12 acres of land in its own name means purchase land on name of LLP and constructed a warehouse on that land. The warehouse was then rented out to another company.

The XYZ LLP does not have any other source of income and earns only monthly rental income.

Now, the question is whether XYZ LLP should report this rental income in Income tax under the head 'Income from House Property' or treat it as 'Business Income' and claim related expenditures.

AI Summary

Rental income classification for an LLP-owned warehouse: whether it falls under house property income or business income. Classification of rental receipts earned by an LLP that acquired land, constructed a warehouse in its own name and let the warehouse to another company. The issue is whether the recurring rental income should be assessed under the head Income from House Property or treated as Business Income so that connected expenditure may be claimed. The material concerns the tax head applicable to lease income from a warehouse owned and rented by the LLP.