Shop/office
Jaiminder Singh Dhillon (CA) (99 Points)
08 August 2021
What would be the treatment of a vacant shop/office under the head income from house property?
4 Replies
Akshay Agaldiviti
(-----)
(40 Points)
Replied 08 August 2021
If it is personal asset of assessee, it is a capital asset being house property hence, if it is additional to Self occupied property then taxable as Demeed let out property, however taxable Income would be nil due to vacancy.
If it is Business asset of assessee, i.e capital asset put to use in business,temporarily vacant i.e not generating any incom,still considered as put to use in business( As usage include both active and passive usage) therefore depreciable asset, depreciated @ 10% for building( excluding cost of land)
Hope it is clear.
Akshay Agaldiviti
akshay.agaldiviti @ gmail.com
Akshay Agaldiviti
(-----)
(40 Points)
Replied 08 August 2021
If it is personal asset of assessee, it is a capital asset being house property hence, if it is additional to Self occupied property then taxable as Demeed let out property, however taxable Income would be nil due to vacancy.
If it is Business asset of assessee, i.e capital asset put to use in business,temporarily vacant i.e not generating any incom,still considered as put to use in business( As usage include both active and passive usage) therefore depreciable asset, depreciated @ 10% for building( excluding cost of land)
Hope it is clear.
Akshay Agaldiviti
akshay.agaldiviti @ gmail.com
Akshay Agaldiviti
(-----)
(40 Points)
Replied 08 August 2021
If it is personal asset of assessee, it is a capital asset being house property hence, if it is additional to Self occupied property then taxable as Demeed let out property, however taxable Income would be nil due to vacancy.
If it is Business asset of assessee, i.e capital asset put to use in business,temporarily vacant i.e not generating any incom,still considered as put to use in business( As usage include both active and passive usage) therefore depreciable asset, depreciated @ 10% for building( excluding cost of land)
Hope it is clear.
Akshay Agaldiviti
akshay.agaldiviti @ gmail.com
Jaiminder Singh Dhillon
(CA)
(99 Points)
Replied 08 August 2021
Is there deduction of loss due to vacancy in case of deemed let out? I mean don't we pay tax on deemed let out property?
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