https://www.taxtmi.com/forum/issue?id=1922 Rent from letting a partner's building to the partnership is treated as business income, allowing the owner to claim depreciation. If depreciation has been claimed on the asset, Section 50 and related provisions apply on sale, potentially altering capital gain computation; assessments treating rent as income from house property can be rectified. Land, not being depreciable, is excluded from the depreciation-linked rules and may be eligible for long-term capital gains treatment with reinvestment reliefs. Tax planning should therefore treat rent as business income, claim depreciation where appropriate, and consider reinvestment/acquisition within the same block of assets to mitigate tax consequences under the depreciation provisions. en-us Fri, 07 May 2010 12:08:43 +0530 Thu, 23 Jan 2025 15:58:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=1922 Rent from letting a partner's building to the partnership is treated as business income, allowing the owner to claim depreciation. If depreciation has been claimed on the asset, Section 50 and related provisions apply on sale, potentially altering capital gain computation; assessments treating rent as income from house property can be rectified. Land, not being depreciable, is excluded from the depreciation-linked rules and may be eligible for long-term capital gains treatment with reinvestment reliefs. Tax planning should therefore treat rent as business income, claim depreciation where appropriate, and consider reinvestment/acquisition within the same block of assets to mitigate tax consequences under the depreciation provisions. Discussion-Forum Income Tax Fri, 07 May 2010 12:08:43 +0530 https://www.taxtmi.com/forum/issue?id=1922