Depreciation

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2011 The manufacturing company has given its building on rent.As per income tax act depreciation can not be claimed as the building not in use of company business.

Under companies act, Can we claim depreciation in books of accounts?

We if claim then liability towards MAT will reduce.

Please suggest.

Selvakumar Selvaraj

Selvakumar Selvaraj (Expert)

14 August 2011 Try to establish connection between the lease transaction with the business of the company. If business of the company itself leasing then you can claim depreciation in both Income-tax act as well as Companies,Act.

CA Saiyum khan

CA Saiyum khan (Expert)

15 August 2011 If the land is owned by the company then depreciation can be claimed as per Companies Act. But at the same time rent income has to be booked in the company.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

15 August 2011 Against rental income no depreciation can be claimed. If it is leasehold business than yes under both the acts it can be claimed

CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)

15 August 2011 Yes you can claim depreciation as per Companies Act while calculating book profit whereas under Income Tax Act no depreciation can be allowed on rental income.

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