Depreciation

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Anil Batheja (Querist)
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01 August 2010 If a person has rented out its immovable property whether he can claim depreciation on it under Income Tax Act, 1961. If yes please tell under which section and decided case laws.

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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01 August 2010 If a person has rented out his immovable property, such income will be taxed under the head 'Income from House property' and no depreciation can be claimed as deduction. He will be entitled to claim standard deduction of 30% of Net Annual Value u/s 24.

However, where the assessee is in the business of renting out immovable property, then such rental income will be considered as buisness receipts and all expenses incurred in the maintenance of such property including depreciation can be claimed as seduction.