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
- Inventory of finished goods
- Confusion around Form 26QB fields
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Disallowance of Section 43B(h) to sez units
- RCM INVOICING FROM NOV-2024
- Tds on building rent monthly
- GST Regis.
- Sale of property furniture sale
- Is correct way to find out capital of individual on 31st March
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- 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?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
