A privated limited company not carrying any business activity has let out its building on rent. If the company is liable to provide depriciation under companies act or not, because under income tax the rent will be assessed under income from house property and against this head no claim for the depriciation will be admissible. But due to providing depriciation under companies act the value of the property will be depriciating every year.
Also guide in either of the situation if any provision for the deferred tax / liability is to be provided.
Thanks 
Menu
depriciation in co law
Replies (3)
My opinion is
The company should provide depreciation under companies act irrespective of the fact that whether the building is used for running business or let out.
Under Income Tax, u will be claiming 30% Standard Deduction in IHP. That amounts to some sort of depreciation.
Deferred tax asset or Liability should be provided.
Please mail regarding % char of Depriciation
a private limited company who earns rental income from let out business premises
can claim standard deduction of 30% ?
and can company claim depreciation against the same ( company act / Income tax )
Recent Topics :
- LTCG: Home Loan Principal Repayment?
- Ims action relationship query
- GIFT REGARDING
- TDS on salary to non resident managing director
- Ewaybill and Transport documents (Lorry receipt)
- LTCG on sale of Builder Buyer Agreement
- Rule 13(2)(h) and valuation of CCDs
- Leave encashment, New labour code, Management cadr
- GST clarification needed:
- TDS processed with short deduction default
Related Topics :
CAclubindia
