Depreciation on self occupied house
This query is : Resolved
13 March 2024
Hello,
Assume a 4BHK house in an apartment complex has been bought in the FY 2021-22. It has become a self-occupied property starting from FY2022-23, where one of the rooms is being used purely for trading (business), rest for living.
a) Can depreciation at 5% be claimed here?
b) Assuming it can, will it be on the whole house or on proportionate basis (for one room)?
c) Assuming on proportionate basis, does this calculation make sense
Cost of house bought = 90L (say)
Room cost = 15L
5% depreciation for 1st year: 75000
Reduced tax liability = 22500 (30% slab)
This calculation is to just get a general sense.
Kindly help. Thanks.
Assume a 4BHK house in an apartment complex has been bought in the FY 2021-22. It has become a self-occupied property starting from FY2022-23, where one of the rooms is being used purely for trading (business), rest for living.
a) Can depreciation at 5% be claimed here?
b) Assuming it can, will it be on the whole house or on proportionate basis (for one room)?
c) Assuming on proportionate basis, does this calculation make sense
Cost of house bought = 90L (say)
Room cost = 15L
5% depreciation for 1st year: 75000
Reduced tax liability = 22500 (30% slab)
This calculation is to just get a general sense.
Kindly help. Thanks.
13 March 2024
a) As it's not capitalised as business asset depreciation can't be claimed.
13 March 2024
Pardon my ignorance but what does this exactly mean? Does this mean that depreciation should have started being claimed from the first year itself & it can't be done now? Thanks.
13 March 2024
No depreciation can be claimed it's self occupied house.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- IT Return filed defective u/s 139 (9)
- Fixed Deposit Claim Relinquishment by the Nominee
- ITR 6 Schedule CFL and UD Issues
- NR GST NUMBER
- TDS RATE ON RENT PAID TO NRI
- GST Form ADT-02
- TCS ON SOFTWARE SALES
- FREELANCING ACCOUNTANT
- Income Type for interest from government bonds
- Not a CA , can we prepare balance sheet
- Query Regarding on TDS section 194H and 194J
- TDS on purchase of value vouchers for employees ?
- PAYMENT TO OPEN AI AND ENVATO ELEMENT
- From 15CA for remittance by domestic travel agent by to Foreign Destination Management Company.
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
