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Depreciation in ac's on buildings generating rental income

Others 1453 views 5 replies

My client has not provided depreciation in ac's for buildings saying that the buildings are generating rental income rather it is not used for bussiness purporse. Is It right doing so???

Replies (5)

Yes he is right,  because rent generating from building is taxable under House Property Head and there is a Standard deduction of 30 % , so no need to claim depreciation. 

Originally posted by : kamal kishor sen

Yes he is right,  because rent generating from building is taxable under House Property Head and there is a Standard deduction of 30 % , so no need to claim depreciation. 

agreed                                                           

i was saying about the impact in the books of accounts as per companies act and not for it computation as per it act.

i think even it is used for bussiness or not depreciaation should be provided in the books of ac;s as per the co's act

Agreed with Hemanth Sai

 

Also as per AS-6 Depriciation , para 3.2   Depreciable  assets are assets which

(i)   are  expected  to be used during more than one accounting

period;  and

(ii)   have a limited useful life; and

(iii)   are held by an enterprise for use in the production or supply of

goods and services, for rental to others, or for administrative

purposes and not for the purpose of sale in the ordinary course

of business.

 

Since its within the scope of depriciable asset, depriciation should be charged on the above asset


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