cap exp

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Sravani Sureddy (Querist)
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22 March 2010 what is the treatment of capital expenditure incurred for office remodernization while computing taxable income and how it should be dealt while it is accounting for?

Zeeshan

Zeeshan (Expert)
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22 March 2010 Building, Furniture & Fixuturse and Office Equipments are need to be capitalised in Income tax as well as in books of Account.

Applicable Depreciation under the IT act will be reduced from the business profit.
Bulding, F & F- 10%
Equipments - 15%

If it is company then Dep. as per Co. Act have to be charged to them in books of Account otherwise the Depreciation under IT Act can also be charged.