Expenses claimed

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nandish (Querist)

04 July 2015 Dear sir,

I have a business in rented office, I made the renovation to this office building. can I claimed as expenses of Repairs and Maintenance. and that building is registered in my name.

Ankur Singhal

Ankur Singhal (Expert)

04 July 2015 Dear Nandish

In the case there are two possibilities:-

1. Does the expenditure done is in nature of extention or any attachment to the building like, constructing additional floor or constructing any rooms etc.

2.Expenditure is simply normal repairs.

Then in case 1 you have to capitalize the expense as deemed building.

In case 2 you have to write off the expense through P&L a/c

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nandish

nandish (Querist)

04 July 2015 Dear sir,

Thanks,

But, That Building not shown in the Previous Balance sheet,and we claimed Rent as an Expenses then also we can claimed the repairs and maintenance (Exp.Painting,Electrical works)

Rupesh Jain

Rupesh Jain (Expert)

04 July 2015 you can claim the repair exp. of rented building as exp.

Ankur Singhal

Ankur Singhal (Expert)

06 July 2015 Dear Nandish
I said it will become deemed asset.
Where the business or profession of the assessee is carried on in a building not owned by him but in respect of which the assessee holds a lease or other right of occupancy and any capital expenditure is incurred by the assessee for the purposes of the business or profession on the construction of any structure or doing of any work in or in relation to, and by way of renovation or extension of, or improvement to, the building, then, the provisions of this clause shall apply as if the said structure or work is a building owned by the assessee.
Check section 32(1) Explanation 1 of income tax act

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