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Lease hold improvements & income tax provisions

ITR 1229 views 2 replies

Hi,

One of my client spent 20 lakhs on Renovations to a leased building, Lease period is 10 years.

How to claim Amortisation on this leasehold improvements  in income tax ?, And How to show in ITR 5? please explain.

Thanks in advance.

Replies (2)
if it is substantial amount, the same will be deemed as a building as per explanation 1 to sec 32 and depreciation will be charged as building.
The same can be shown as an addition in building in ITR

if the same is not a substantial amount, the same will be treated as current repairs and deduction will be claimed u/s 30

Thanks alot for your valueable reply.


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