28 August 2008
A company has let out its property (building) which is the main business of the company. The said property is showed as fixed assets of the company and they have not claimed depreciation on that in the past years.During the FY 2007-08 a part of the property is sold and our queries regarding the same are as follow:
How the rental income should be recognised i.e. income from house property or business income?
Can we treat the same building (having three parts) as block of assets ? What will be the treatment of gain on sale of part of the building, i.e. Is it a capital gain on individual house property or as per the bases of block of assets?
CAclubindia
