How to show rental expenses in sole proprietorship business?

Hi, I have registered a sole proprietorship IT business with a trade license using my father's home address. I currently stay in my father's home only. However if I rent an office space then can I show this rented office space as my expenditure? I intend to pay rent from my sole proprietorship current account. Is there anything else I should keep in mind like any change in Trade License information?
Replies (3)

Yes, you can show the rent as an expense and claim deduction. You should possess a rent agreement/deed and duly acknowledged rent receipts for ready reference in case any information is sought. 

If Your trade license contains your professional address which you intend to change now then you must apply for change/amendment .

@ Ruchi Thank You. Regarding the trade license, is it mandatory to change/amend this new rented space as the office address? Will there be any legal/tax implication if I do not update my trade license?

There are no tax implications but definitely you should update your professional address in your trade licences because licensing authorities have their own rules and regulations regarding this. Hence you might face difficulties and penal consequences.

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