DEPRECIATION UNDER INCOME TAX ACT.

SANJIV BATRA (Querist) 21 September 2010 This query is : Resolved
WE HAD PURCHASED AN INDUSTRIAL BUILDING (INCLUSIVE OF LAND & BUILDING) FOR RS. 50,00,000/-. THERE WAS A COMPOSITE DEAL OF LAND & BUILDING. THERE IS NO BREAK-UP OF PURCHASE PRICE OF LAND & BUILDING. WILL WE GET DEPRECIATION ON ENTIRE AMOUNT (RS.50,00,000/-) OR NOT?

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Raj Kumar Makkad (Expert) 21 September 2010
You shall definitely get the depreciation on both land and building as per relevant rules.

B.Chakrapani Warrier (Expert) 21 September 2010
No depreciation on land will be allowed. In such situation take out a valuation report from an approved valuer, and claim depreciation on the value arrived at on building alone.