Depreciation on rented property
This query is : Resolved
22 February 2014
Can owner of property claim depreciation on it if it is let out??
22 February 2014
yes you can...there is no restriction on that..
22 February 2014
The income from rented property will be assessed under the head Income from House Property. The deduction of depreciation of that property can't be claimed by you.
22 February 2014
Avtar, what if the income is being offered under the Head "Income from business/profession"??
22 February 2014
1. If the property used in a business, is temporarily let out, income can be offered under the head 'income from business or profession' and depreciation can be claimed.
2. In case of composite letting, income can be offered under the head 'income from other sources' and depreciation can be claimed u/s 57(ii) of the Income tax Act,1961.
3. In all other cases, I endorse the view of Avtar Ji.
2. In case of composite letting, income can be offered under the head 'income from other sources' and depreciation can be claimed u/s 57(ii) of the Income tax Act,1961.
3. In all other cases, I endorse the view of Avtar Ji.
22 February 2014
Nikhil, Annual Rental income from building has to be compulsorily assessed under 'income from House property'. There is no option with the assessee.
22 February 2014
it is not compulsory Avtar. while generally yes it is true that income is to be accounted under "in from house property, there are many instances where the wider import is to be seen. where the dominant activity is to earn income from letting out commercial properties, the said income is chargeable under the head "income from business/profession"
just for eg u can read https://www.bcasonline.org/articles/artin.asp?511
just for eg u can read https://www.bcasonline.org/articles/artin.asp?511
22 February 2014
Rental income from letting out of residential and commercial buildings is covered under the head of income from House Property. It is only where, the property constitutes stock in trade of business or where business of assessee is to let out house property, income is covered under the head profits and gains of Business & Profession.
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