A partnership firm owned a Commercial Building.The same is given on rent & getting rental income regularly. Now the Query is whether the said income is taxable either from Income from House Property or Business Income.Moreover how the said asset i.e. Commercial Building is shown in Balance sheet either as fixed Asset or Investment.
Further if considered as rental income from Property whether the firm can claim Salary to partners or interest on partner's Capital as allowable expenditure from the said income or not & if considered the Business Income then the Firm can claim Depreciation thereon or not along with Partner's Salary & Interest to them on capital as allowable expenditure as per I.T. Act or Rules made thereunder. Please reply immediately. Thanks in Advance.
CAclubindia
