Depreciation on rented building

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This query is : Resolved

Gaurav Garg (Querist)

18 May 2016 If pvt. Ltd. company has given its building on rent, then do we have to provide depreciation on same under companies act 2013. Do we have to take into account depreciation under income tax for calculating deferred tax as we cannot claim depreciation on rented property under income tax act.

Rupesh Jain

Rupesh Jain (Expert)

18 May 2016 under income tax under rental income depreciation is not allowed only 30% deduction is allowed. you can take depreciation under the company act.

Gaurav Garg

Gaurav Garg (Querist)

18 May 2016 Is it necessary to provide depreciation under companies act. what if we have not provided depreciation in earlier years. Do we have to take depreciation on rented building

Gaurav Garg

Gaurav Garg (Querist)

18 May 2016 do we have to take depreciation under income tax on rented building for calculation purpose only of deferred tax or not

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

18 May 2016 1. Depreciate as per co's Act.

2. Need not depreciate as per IT act.

3. Exclude depreciation to calculate deferred tax being a 'permanent difference'.

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