Leasing

Dear Anne,

Capitalised the cost of construction of shed in your accounts and don't capitalises lease rental to be payable to lessor of land. Even if u take land on lease for 20 years, it would not allow u to enjoy the transfer rights.

if the shed has been used for business purpose, then U can take the benefit of depreciation on shed. Further, lease rental paid for land should be a deductible expenses under income tax act provided u carry on the business on the said land or u utilising that land for business purpose.

Hope this solves u'r query.

Regards,

Manoj