My client is a Pvt. Ltd. company. It holds one office, which he gave on rent & income under house property is coming. During the year the rented property become vacant for rest of the year. My query is whether he is eligible for depreciation in the year or not. If yes how we calculate the depreciation amount.
Thanks in advance
No the Company will not be allowed to charge Depreciation on the Office premises.
sir but the asset is not on rent for whole year.....
To be able to claim depreciation on the asset, the same must be utilised for business purpose. Since in your case, the same was let out for rental income, the same cannot be said to have been let out for business purposes. So in your case, no depreciation can be claimed for the house property
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