Rental income earned from properties you own is taxed as income from house property. However, if you sub-let a property that you don’t own, the income isn’t considered house property income. It depends on how the property was sub-letted. If it was for business purposes, it would be taxed as income from business or profession. Otherwise, it will fall under income from other sources.
- How to Add Sub-Let Income as Other Sources
- Navigate to File > Incomes > Other Incomes and click on Any Other income
- Add the income under Others
- Navigate to File > Incomes > Other Incomes and click on Any Other income
- How to Add Sub-Let Income as Business & Profession:
- Navigate to File > Incomes > Business & Profession
- Select Services as the nature of business
- Choose the appropriate taxation scheme and provide Business Details
- Select 07 - Real estate and renting services as the business category, and add the property address
- Enter the revenue and expenses for your sub-letting business.
- Navigate to File > Incomes > Business & Profession
If you still have any further queries, you can raise a ticket to get in touch with us.