@Quicko, assume a 4BHK house in an apartment complex has been bought in the FY 2021-22. It has become a self-occupied property starting from FY2022-23, where one of the rooms is being used purely for trading (business), rest for living.
a) Can depreciation at 5% be claimed here?
b) Assuming it can, will it be on the whole house or on proportionate basis (for one room)?
Thanks.
Hi,
Purely speaking from the Tax point of view as a CA, this will not be an appropriate planning. The issue is that claiming depreciation on a asset makes it a short term asset. This way if you go ahead to sell the property in future then the gain will be considered a short term gain losing the benefit of indexation.
Regards,
Aditya
Hey @Aditya_Mundada,
That might not be the best way to go about it.
In case you had rented the premises for trading purposes, you could have claimed the rent as an expense. However in your case, as the property is self-occupied, the same would not be possible.
@Quicko, talking about depreciation here, not rent.
To confirm, depreciation cannot be claimed for a self-occupied property being partially used for business purposes?