Friday , 15 December 2017
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Income from advertisement hoarding

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.

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About CA Karishma

I am a Chartered Accountant by profession and an avid teacher. Writing is my hobby and this blog is a platform to share knowledge and interact with prospective Chartered Accountants. I locate my work at the intersection of Chartered accountancy & education. I teach among others, Taxation at Tapasya Academy for CA, one of the premier institute for Chartered Accountancy course in Andhra Pradesh.

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3 comments

  1. mam i didnt undrstd whethr it z taxable undr ifhs r ifos r pgbp plz xplain it..2 my view it z treated as ifhs

  2. as far as i know income frm adv hoarding treated under ifos coz its used for commercial purpose..

  3. whether the expenses of hoarding are allowed for deduction to be claimed in hp or not?

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