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Co-Ownership question

490 views 1 replies

sanath

Chartered Accountant

299 Points Joined October 2007

Husband and wife own a property jointly and the wife uses it to run her consulting business. The husband is co-owner in another property also with his parents which is self occupied.

1) Is it possible to for the wife to claim depreciation on her share of the property.

2) How does the husband declare his share in both properties considering the answer in 1 above.

Thanks in advance.

Replies (1)

Guest

Hi Sanath,

Yes she can claim Dep. u/s 32, as per sec 38 if assets are used partly for personal purpose and partly official purpose then propertionate dep. shall be allowed otherwise full dep can be claimed. In her case full dep. can be claimed if used for business purpose fully.

The husband cannot show the first property under income from HP as the co owner is using it under business profession and cliaming dep. on it, as for the secondproperty it can be showed under Income from HP.