Income from Solar roof tops

[Vignesh karthik]

I have invested a sizeable amount in 2016 December for getting my solar roof top system up on my own house. Power produced from this plant is sold to ESCOM for which I am paid based on number of units generated. I would like to know, if I can claim depreciation benefit on the amount I invested and if the income generated from solar roof top is taxable for individuals.

AI Summary

Depreciation on solar rooftop: availability depends on asset classification and tax characterization of sale proceeds. Whether depreciation can be claimed on a rooftop solar installation and whether payments for electricity supplied to the distribution company are taxable hinge on classification of the solar plant as a capital asset, its use (personal versus commercial), and the appropriate characterization of the receipts as business income or income from other sources, which will determine allowance of depreciation, deductible expenses, and reporting obligations.