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Please help in following case

498 views 2 replies

Dixit

CA Final

2405 Points Posted on 17 November 2011

One firm has a business which is stop now a days abd wind up. and its Depreciable assets is give on rent. So, guide me in which head we treat income of rent? Whether it is granted in House Property or Other Soueses. Firm have a huge depreciable loss still pending and frim is parnership firm.

Thx in advance

Replies (2)

Giridhar S Karandikar

Team Lead

7558 Points Posted on 17 November 2011

Please note that the rental income from renting depreciable assets cannot bw shown under House Property, as for rental income to be shonw from house property there should be an house property incluinding any land appurtenant thereto if any.

The income would be required to be shown as Income from other sources. Depreciation loss can be set-off against any income. Hence the Income from renting of assets can be set-off against depreciation loss.

Vikas

1135 Points Posted on 18 November 2011

agree with mr. giridhar...other than house property rent would b taken as an income from other sources.... and my friend though carried forward business loss can not b adjusted agst the other incomes but the depreciation loss can b adjusted agst any other income...