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Depreciation

119 views 1 replies

Somesh Satish Magdum.

Student

25 Points Joined April 2015

A business owner shows his residential house as a fixed asset in his financial statements. It is neither used for his employees nor for other business purposes. No division of floors for household or business use. Can he claim the depreciation? If yes, how much? and if not why?

Replies (1)

CA Harshal Totla

Chartered Accountant

2229 Points Joined May 2014

As per section 32 of the Income Tax Act, 1961, depreciation is allowed on tangible assets and intangible assets owned, wholly or partly, by the assesse and used for the purposes of business or profession of assessee. Since, the said residential house is not used for the business purpose of assessee in any way, you cannot claim depreciation on it