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Income recognition
I have an House property in which 50% is used for my own business and 50% is let out portion and I also have a Loan on that Property. So While closing My books of accounts shall I take the advantage of depriciation Expense on the Building used for the business part or should I treat it as HP Income.
Replies (4)
As I understand, you can take benefit of depreciation to the extent the building is used for business purpose i.e. 50% in this case
Is the Loan Intrest amount to be segregated on 1:1 Ratio or total intrest amount can be claimed as deduction under sec 24(b) as 50% is Let out Part
50% of interest can be claimed as deduction u/s 24 for LOP. Balance 50% can be claimed as deduction from business income
So we can claim 50% amount of interest as deduction in form of 24(b) and other in the form of interestexpense in P&L account.
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