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Rented a shop for clinic

Tax queries 122 views 3 replies

bhavesh bhargava

5 Points Posted on 23 June 2016

hi,

my wife , who is a doctor, has opened a clinic recently and she is paying rs 13500 rent per month. So if she earns 25000 per month then the net income will exclude rent paid or not?

when filing return can she show the total rent paid as an expense for running her clinic?

if yes ,then is there any limit for rent paid?

Replies (3)

Shishir Nayak

(Expert)

369 Points Posted on 23 June 2016

Condition for allowance under section 37::::::::::::: Such expenditure should not be covered under the specific section i.e. sections 30 to 36.::::::: Expenditure should not be of capital nature:::::::::: The expenditure should be incurred during the previous year.::::::::::: The expenditure should not be of personal nature.::::::::::: The expenditure should have been incurred wholly or exclusively for the purpose of the business or profession.::::::::::: The business should be commenced.:::::::::::::: I Hope in your case all condition is satisfied and you can claim the rent expenses as business expenditure.

CA Harshal Totla

Chartered Accountant

2229 Points Posted on 23 June 2016

Dear Bhavesh, as your wife is a medical practioner she needs to file ITR-4. The rent paid by her in will be allowed as expenditure in connection to her profession fully.