Kindly differentiate between a tenant and paying guest for the purpose of House Tax.
Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 23 March 2013
In legal terms, a tenant is defined as a person granted a temporary exclusive use of a property in exchange for rent. A guest is defined as a person welcomed onto a tenant's property with the intent of visiting for a specified amount of time. In addition to the legal definitions, if a question arises as to whether a person staying at a property is a guest or a tenant, a court of law takes several factors into account.
Sankaranarayanan (Advocate) 23 March 2013
this is the real meaing of tannent tenant n. a person who occupies real property owned by another based upon an agreement between the person and the landlord/owner, almost always for rental payments but tpaying guest is only short time stay
M.R.K.PRASAD-Advocate (SELF) 25 March 2013
Paying guest accommodation will be only on residential sector which includes food nd beverages along with shelter. Tenant is independent nd transfer of property is affected for the period. ..But in paying guest it may be shared with owner or co members. But for house tax the amount received should be divided into shelter part nd boarding part. ..And also it depends on local laws may differ from state to state.
Neha Sharma (Student) 25 March 2013
Would income from PG be treated as Rental Income or business income ?
VARUN MAHAJAN (Proprietor) 30 March 2013
THE SAME SHOULD BE TREATED AS BUSINESS INCOME AS THE PERSON IS NOT THE PROPERTY BUT ALSO FURNITUURE AMNITIES FOOD AND OTHER FACILITIES.
WHERE AS IT SHOULD BE TRATED AS BUSINESS INCOME