Property purchased by a realty company
This query is : Resolved
04 December 2010
Hi Experts,
A real estate company has purchased a property and let out the same on a rental basis.
However, it has accounted the same as a Fixed Asset and claimed depreciation.
I am of the opinion that the same should be shown as an Investment.
Kindly provide your inputs to the said matter.
A real estate company has purchased a property and let out the same on a rental basis.
However, it has accounted the same as a Fixed Asset and claimed depreciation.
I am of the opinion that the same should be shown as an Investment.
Kindly provide your inputs to the said matter.
04 December 2010
As the company engaged in the real state business so plz refer the object clause of the memorandum of association , if there mentioned .
If in the same it has been mentioned that company will be engaged in the purchase of building and flats and whatever the name called and will resale it or let out or of the same nature .
than it will not be taken as investment ,it will be treated as a fixed asset for the company .
If you take it as investment than rent will be treated as income from other sources
It is my opinion -
As the company engaged in the real state business so plz refer the object clause of the memorandum of association , if there mentioned .
If in the same it has been mentioned that company will be engaged in the purchase of building and flats and whatever the name called and will resale it or let out or of the same nature .
than it will not be taken as investment ,it will be treated as a fixed asset for the company .
If you take it as investment than rent will be treated as income from other sources
It is my opinion -
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Tax on Deemed Capital Gain
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
