if a commercial or industrial property is given on rent by a firm, whether depreciation is allowable on the same property???
can we give the benefit of 30% deduction on the same property without allowing depreciation????
CA Mukul Mittal (CA in practice) (384 Points)
07 August 2011if a commercial or industrial property is given on rent by a firm, whether depreciation is allowable on the same property???
can we give the benefit of 30% deduction on the same property without allowing depreciation????
Devendra
(Chartered Accountant)
(4775 Points)
Replied 08 August 2011
The income earned shall be Taxable under the head Income from House Property, thus only standard deduction of 30% can be claimed on such property income. Depreciation cannot be claimed on renting on such property.
Regards,
Devendra K
CA Mukul Mittal
(CA in practice)
(384 Points)
Replied 08 August 2011
what if the same property is taken in the business after sometime say 5 years............will the wdv be the same as book value????
CA. Vikas Sharma
(Chartered Acountant)
(93 Points)
Replied 09 August 2011
If you gave a property on rent, you are not allowed to claim depreciation. The only allowable deduction is 30% standard deduction.
if that peoperty is engaged into business after sometime say 5 years then wdv shall be
= book value-Depreciation of 5 years
CAclubindia
