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depriciation of land and building

snambiraajan (consultant) (98 Points)

09 July 2010

dear sirs / madams, i would like to request ur goodself to address my doubt. one of my friend is doing a business of rental of shamiana, table and chairs for the funtions. he also have a house which had been given on rent to corporate office they have been deducting TDS at the rate of 10% (is it correct?) how could i calculate the depriciation for the building worths Rs.600000 (six lakhs)

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9 Replies

DT Fundas - Tarun rustagi ( Author) (1150 Points)
Replied 09 July 2010

dear friend

if the amount of rent exceeds rs.120000 then they are correct and depreciation rate on building is 15% general(wdv)

1 Like

CA B Anand (CHARTERED ACCOUNTANT) (198 Points)
Replied 10 July 2010

NAMBIRAJAN sir,

Regarding the rent collected on letting out to the corporate office will be assessed under the head " Income from house property" and only flat rate of 30% of NAV shall be allowed as deduction. Depreciation is not permissible.

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CA Krishna Chaitanya M (Chartered Accountant) (463 Points)
Replied 10 July 2010

for claiming depreciation, asset must be used for business or profession, here assesses main business relates to rent shamianas and tables and chairs, so his rental income received from corporate office is covered under income from house property

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CA Amit Kumar Khaitan (Research Analyst) (360 Points)
Replied 10 July 2010

No dep.... just std deduction under sec 24

1 Like

PANKAJ MORE (xxxxxxx) (48 Points)
Replied 10 July 2010

No dear, here you will not get the depreciation as the building is not used in bussiness.

you will get the benefit of standard deduction u/s 24(i.e. 30% of the rent recieved). under the head income from house property

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Sharad Saini (Student) (286 Points)
Replied 10 July 2010

for income tax purpose dep will not be allowed as this income will be taxable u/h Income from house property.

company is right in deducting tds @ 10% .

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(Guest)

Originally posted by : Sharad Saini
	for income tax purpose dep will not be allowed as this income will be taxable u/h Income from house property. company is right in deducting tds @ 10% .