I rent out my shop and also provide additional services to them, such as supplying computers to the tenant or other ancillary services. The rent I receive includes service charges. How should this income be taxed in my income tax return?

In these situations, splitting the payment received from the tenant into separate categories of charges, i.e. "Rent" and "Service charges",  would be the best course of action. The amount classified as Rent will be charged to tax under the head "Income from House Property" and the amount classified as Service Charges will be charged to tax under the head "Income from Other Sources".

However, if the payment is not separable into Rent and Service charges, then the whole amount should be charged to tax under the head "Income from Other Sources".

Further, if renting shops is the nature of your business, then the whole amount will be charged to tax under the head "Income from Business or Profession", whether or not the amount is separable.