depriciation of land and building

Tax planning 2724 views 9 replies

snambiraajan

consultant

98 Points Joined October 2009

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)

Replies (9)

Guest

dear friend

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

CA B Anand

CHARTERED ACCOUNTANT

198 Points Joined September 2009

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.

CA Krishna Chaitanya M

Chartered Accountant

463 Points Joined October 2009

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

CA Amit Kumar Khaitan

Research Analyst

360 Points Joined March 2007

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

PANKAJ MORE

xxxxxxx

48 Points Joined June 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

Sharad Saini

Student

286 Points Joined May 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% .

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% .