House property used for business purpose

An assessee has the house property and he uses it for the purpose of business and profession.....He has taken a loan for the construction of this building....Now since he is using the HP for business purpose the Property becomes the asset of the business...

Will the Assessee claim depreciation in this regard for the asset @ 5% /10% as the case may be??

WIll assessee claim the deduction for the payment of interest under the P/L a/c or this interest will form part of the cost of the asset and accordingly the depreciation will be claimed.....if yes...what if the interest is paid after the asset is entered into the block i.e it is not the pre-construction interest???

 

Pls give ur opinion ..

 

Replies (4)

Dear Bonita,

 

If your house property is part of your business assets, you have to follow AS 16 Borrowing cost and accordingly, post-put to use/acquisition/construction interest shall be charged to p & L.

 

Thanks 

In my opinion, capitalise the pre-contruction interest and add it to the cost of the building. 

 

Claim depreciation on the building, claim the interest U/s 36(i)(iii)

depreciation @ 10% -sec 32

Interest u/s 36

Preconstruction interest to be capitalised

 

dep is allowed on capital assets it it is put to use in business & if building is under construction then int will be capitalised & when it will be completed dep will be allowed @ 10% & int will also be allowed separately in pl a/c

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details