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)
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.
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
No dep.... just std deduction under sec 24
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
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% .
| Originally posted by : Sharad Saini | ||
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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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Yes I agree with rustagi
tarun rustagi
i would like to thank one and all those who had given their valuable suggestions.
CAclubindia
