if I have a aggrement with a party
who is leasee of my asset & agreement has mentioned that asset will return with appreciated value. then wether I have to enter depreciation in account.
3 Replies
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5197 Points)
Replied 04 December 2017
No. You have to appreciate the value of asset. Appreciation means addition.
CA. Kailash Vaishnav
(Practicing CA)
(51 Points)
Replied 06 December 2017
If you are in the business and you have leased one of your asset to the lessee you can claim deprecation on the asset. Even otherwise If you show income under other sources you can claim depreciation under section 57. If appreciation is just the lease payments then itshould be booked as income and not added to the asset.
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