Discuss giving reason regarding admissibility or otherwise of the following expenditures while computing income under the head Income from Business or Profession: Rent paid on daughter of the assessee for her building us
CS Executive · Tax Laws · PYQS · June 2019
Discuss giving reason regarding admissibility or otherwise of the following expenditures while computing income under the head Income from Business or Profession: Rent paid on daughter of the assessee for her building used as office premises of the business. The building was actually gifted to her by the assessee (father) at the time of her marriage.
Answer & Explanation:
Admissible - The building is owned by the daughter of the assessee and used for the business of the assessee. Therefore the rent paid to daughter of the assessee for her building used as office premises is allowed upto the reasonable limit (Not exceeding market rent).
Topics: Income Tax Act, 1961
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