Rental income from Sub-Letting

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.

1. How to Add Sub-Let Income as Other Sources
   1. Navigate to File > Incomes > Other Incomes and click on Any Other income 
      
      
   2. Add the income under Others
      
      
2. How to Add Sub-Let Income as Business & Profession:
   1. Navigate to File > Incomes > Business & Profession
      
      
      
   2. Select Services as the nature of business
      
      
   3. Choose the appropriate taxation scheme and provide Business Details

      
      

      
      
      
   4. Select 07 - Real estate and renting services as the business category, and add the property address
      
      
   5. Enter the revenue and expenses for your sub-letting business.
      

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