29 April 2009
Dear Sir/ Madam I want to know wether the depriciation on buildings is the same on Commercial & residential buildings, let me know... and i have another doubt that What is the difference between financial year & asessment year.
29 April 2009
As prescribed by Income Tax Act, Depreciation is not same for Residential Buildings and Commercial Buildings. The Depreciation rate is as follows: Residential - 5% Commercial - 10%
FY, AY - The difference is made for the purpose of Charging and Assessing the Income Tax on the Income earned. Financial year(FY) - The period from 1st April to 31st March is known as FY. Assessment Year (AY) - The period (April-March) immediately succeeding Financial Year is AY.The Return submitted by the assessee is assessed in AY. This will be clear from the example - Mr. A earns income Rs. 5 Lacs in FY 2007-08. Such income is Assessed to Tax by the IT dept in FY 2008-09. Such FY 2008-09 is known as AY.
If FY is 1st April 2008-31st March 2009 then the AY will be 1st April 2009-31st March 2010.
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