Dear Friends
The assessee purchased Furniture, Vessels & Utensils every year for rental purpose. Can we capitalize these assets and claim depreciation or it should be treated as stock in trade. If we treat as stock in trade, every year purchases added with stock and there is no sales. And rental income derived from these assets can be shown as business income. Please advise correct method of accounting under Income Tax
Nature of business is letting on hire furniture & utensils. How can I account in my books when these assets are purchased, whether accounted under fixed assets and claim depreciation or stock in trade
Assets purchased out of their own funds. These assets used for rental purpose only. There is no hire purchase or Instalment. Whether these assets can be accounted in Balance Sheet under fixed assets and claim depreciation or treated as stock in hand. These rental income taxable under House Property or Business Income. Please clarify
Sir
The assets are not purchased on rental basis.The assets like furnitures, vessels,etc.,purchased out of his own funds. The assessee's nature of business is letting out furnitures,vessels on rent.My question is
1.How to account the assets purchased in the balance sheet. Whether accounted under fixed assets and claim depreciation or accounted under stock in trade. If it is accounted as stock in trade, stock value increased year to year when these assets are purchased every year.
2.These rental income is business income or other sources.
Please advise the experts.
Thanks.
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