How to calculate Income tax on Income from House property in case of a firm,?

I want to now how to calculate income tax & advance tax on Income from House property inrespect of a partnership Firm .
And whethre the standard deduction is applicable for a partnership firm.

4 Replies to “How to calculate Income tax on Income from House property in case of a firm,?”

  1. Your answer is dependent on many things my friend. First you need to say from which country you belong. If you are from india, then Go to income tax web chech the list of deduction for Self employeed professionals. Check the positives and negatives of your and your partner, then you can come to know how much will be your income tax. List out the Incomes that you have recieved at your income source, Out of that 20 % can be maximum income tax as per indian provision. Out of that if your income is below 1.5 lakh per year then No Tax. If more than 1.5 then 1.5-5 lakhs 10 % tax. above 5 lakhs 20 % tax. Above 10 lakhs tax rates is 30 %. From that you have many provisions for savings and dependents and medical expenses. Except that you need to pay cash.

  2. If the company is in the business of renting the properties, the income will still be charged under “Income from House Property”, and not under income from business or profession.

    If your main business is not renting out the properties, and the renting is linked with your main business, then the rent income is your business income. Read

    A partnership is treated as a separate entity for tax purpose. A partnerhip with a proper partnership deed is taxed as a partnerhip, and if no partnership deed exists, it is taxed as AOP. Read

  3. the folowing is the procedure for the calculation for income tax in respect of house property

    Municipal value/rental value xxx
    less:municipal taxes xx
    gross value xxx
    less standard deduction (30%) of gross value
    the answer is the tax you have to pay for the house property income
    Yes standard deduction is applicable for the partnership firm

    for further queries contact Daga Consultants at [email protected]

  4. you may pay municiple taxes and show as expense.And,then, unless the firm is in the rental business, from the rent received, (if above municiple rateable value), take 30% standard deduction and arrive at the figure of under this head.

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