Assets

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jayashri (Querist)

15 June 2013 Dear all,

i have one query about assets.

why bank purchase assets?

what is the aim behind that?

Jab bank ek building kharedi karti hain to usake upar depreciation bhi to charge karti hain har saal,to building lene ka fayda kya hain?

usase kya asar hota hain bank ke finncial pr?

ulta depreciation se to profit kam dikhata hain to fir kyun bank khud ke liye building kharedi karna chahati hain?

plz solve my query?

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)

15 June 2013 THERE ARE TWO MAJOR ,FACTORS WHY BANKS PURCHASE BUILDINGS INSTEAD OF GETTING THAT RENTED...
1. WITH THE DEPRECIATION CLAIM THE CAN BRING DOWN THE TAXABLE PROFITS AND AS SUCH THEY SAVE TAX..
2. THE COST TO RENT A BUILDING IS MUCH MORE THAN TO PURCHASE IT...IF YOU TAKE A ANALYTICAL VIEW TOWARDS IT WITH THE INFLATION FACTOR IT IS ALWAYS BETTER TO PURCHASE..

YES THE PROFITS COME DOWN BECAUSE OF DEPRECIATION BUT THAT IS IN ALL WAYS FAVOURABLE TO THE BANKS...

jayashri

jayashri (Querist)

16 June 2013 thanks sir for solved my query

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)

16 June 2013 u r welcome.

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