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 Topics :
- NSFA(National Food Security Act) commission
- RCM applicability on petty GTA freight (₹450
- Short payment reccieved in export & GST implic
- Parag Gupta vs Purushottam Aggarwal- who is best f
- GST applicability on own-vehicle goods transportat
- FAST DS Scheme 26
- 12A registration expired in FY 22-23 and is not re
- Seeking Clarification on Business Code Selection a
- CG on property sold after construction of a house
- Nursing Home Taxability
Related Topics :
ARTICLESHIP
15 September 2026
Freelance Taxation Content Writer Intern
Interactive Media Pvt Ltd.
New Delhi
CA Inter
View Details
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER
Anupam Parashar & Co.
Ghaziabad
CA Final
View Details
CCI
Pro
CAclubindia
