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Composite rent in commmercial building

703 views 1 replies

Rajeev

MNG

24 Points Posted on 21 August 2012

HI,

I have a commercial property and fetching rent of around 60k/month, now this rent inculdes service like Generator, lift inculded. I understand that this income would come into income from housing property but since this also inculdes services can I break this rent and claim for the generator and lift under income from other sources. But as per the agreement this breakage is not present they are giving me the rent for the property and the services inculsive. Please advice.

Also, is there a way to claim depreciation of the commercial property since it is let out can I show this as assest and then claim depreciation on that.

Thanks and awaiting your valuable inputs.

Replies (1)

Amit S

Service

47 Points Posted on 21 August 2012

Hi,

In the given case, the Income from services would be chargeable under the income from other sources. To segregate the house property income the agreement must have a mention of service charges and rental portion separately. It is ok even if a single payment is received. The depreciation cannot be claimed as the building is let out for commercial purposes. The building depreciation could be claimed only in case if the assessee used it for conducting his own business.