A taxpayer leased out a building together with plant and machinery installed in it. Which of the following deductions can the taxpayer claim against this lease income under the head "Income from Other Sources"?

Correct answer: C) C) Depreciation on the plant, machinery, and building, and initial allowance on the plant and machinery only.

Explanation

In the case of income from the lease of a building together with machinery or plant, the taxpayer is allowed a deduction for depreciation on the plant, machinery, and building under Section 22, and an initial allowance on the plant and machinery only under Section 23.