Invesment in property

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2014 A company engaged in the manufacturing and exporting of jewellery and have purchased immovable property i.e. shops in the mall. The same has been on rental basis and the rent income is shown under the head fixed assets and the depreciation is being claimed on the same .

please advise us the above practise is correct or whether this should have been shown under the head of investment.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 May 2014 yes, if the asset has been purchased as an investment, you should show the income as investment income only and depreciation should not be claimed.

Rupesh Jain

Rupesh Jain (Expert)
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23 May 2014 purchase the assets as investment and rent will taxable under income from house property and take deduction u/s 24(b)
you can not show rent under fixed assets head. no depreciation will allowed.

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