I own a duplex house in which I stay with my family. Though I do not have any tenant for my house, I have let out my rooftop to a company that displays its hoardings on it and pays me an annual rent for it. I would like to know how I should treat it in my income tax return. The company says that it is paying me rent, but since my house is not let out, I think it should not be taxed under the head ‘house property’.
The advertising company is right in stating that it is paying rental income to you. However, the amount received in your hands is not your income from house property, but your business income since it is derived from the display of hoarding and not from letting out the house on rent. The income shall reflect in your income statement accordingly. If there is any expenses incidental to such letting out (electricity expenses, repairs and maintenance, etc.), you can claim it as deduction from this income.