Purchase of residence house show in itr

Hello, 

If you are asking about Indian income-tax/tax-audit treatment for FY 2023–24, where an assessee purchased/constructed a residential house for personal use, the treatment would generally be:

1. Not a business asset: The cost should not be debited to the fixed-assets block used for business depreciation, because the house is being used personally and is not used for the assessee's business/profession.
2. Capital/personal account: The expenditure can be recorded as a personal capital asset / drawings/ geometry dash (capital account) in the books, depending on the assessee's accounting system.
3. If the house is shown separately as a non-business fixed asset/personal immovable property, it should be clearly identified as personal-use property, with no depreciation claimed under the Income-tax Act.

Since the residential house was purchased/constructed purely for personal use and not for business operations, it should be debited to the Capital Account (as Drawings / Capital Withdrawal) and NOT included in the business's Fixed Assets block.

- Treat the payment as a personal drawing (Drawings A/c Dr. to Bank A/c Cr. the freak circus) or directly reduce it from the proprietor's Capital Account

- Don't forget that if the purchase consideration exceeds ₹50 Lakhs, TDS @ 1% under Section 194-IA must be deducted from the seller and deposited via Form 26QB, regardless of whether it is a business or personal transaction.

Debit Capital Account / Drawings. Keep business books strictly separated from personal residential property.