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Hospital rent Taxation

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Kishore Nuthalapati

Accountant for multiple small entities

171 Points Posted on 24 May 2023

Hi Sir/Madam

We would like to separate hospital building from Hospital operations

Hospital building will be under proprietorship

Hospital operations under Company

from Company Every month we are Paying rent to wards Hospital building to Proprietor by deducting tds including GST

Please advise

is there any chance to get depreciation for building under proprietorship

instead of showing Hospital rent under income from house property

Thanks in advance

Replies (2)

Quick Summary

This discussion explores the tax implications of separating hospital operations from the hospital building. The user is paying rent from a company (operations) to a proprietorship (building) and deducting TDS and GST. They are seeking advice on whether depreciation can be claimed on the hospital building under proprietorship, instead of treating the rent as income from house property. The consensus is that if property rental is a business, depreciation can be claimed under PGBP.