A privated limited company not carrying any business activity has let out its building on rent. If the company is liable to provide depriciation under companies act or not, because under income tax the rent will be assessed under income from house property and against this head no claim for the depriciation will be admissible. But due to providing depriciation under companies act the value of the property will be depriciating every year.
Also guide in either of the situation if any provision for the deferred tax / liability is to be provided.
Thanks 
Menu
depriciation in co law
Replies (3)
My opinion is
The company should provide depreciation under companies act irrespective of the fact that whether the building is used for running business or let out.
Under Income Tax, u will be claiming 30% Standard Deduction in IHP. That amounts to some sort of depreciation.
Deferred tax asset or Liability should be provided.
Please mail regarding % char of Depriciation
a private limited company who earns rental income from let out business premises
can claim standard deduction of 30% ?
and can company claim depreciation against the same ( company act / Income tax )
Recent Topic
- How do I choose the correct trademark class? Can I
- Error in totalling salary amount in AIS
- Client consent under DPDPA: Is client sharing PAN,
- TDS MISMATCH
- Rebate on other income even if LTCG is above my 12
- Need CA to certify shareholding pattern.
- Ltcg savings
- Please share the roc and income tax compliance fo
- Proprietor have 2 business. One is registered unde
- ITR-4 – Gross Receipts or Turnover for Secti
Related Topics
CAclubindia
