Depreciation on Building

This query is : Resolved

Vijay Mishra (Querist)
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20 March 2010 Dear Sir/Ma'm

Please let us know should we charge deprecition on office building or not. If not, please let us know why in detail. Please let us know for land also.

Regards

Vijay Mishra
9311352965

CA Balram Sharma

CA Balram Sharma (Expert)
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20 March 2010 yah ,

you should charge the deprecation on building,

CA. Deepak Narula

CA. Deepak Narula (Expert)
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20 March 2010 Dear Vijay

Dep shud be charged on oofice building in accordance with sec 32 of income tax Act at the rate of 10% on WDV. Even if u dont charge dep on building it will deemed to have been allowed and WDV will be reduced by the amt of dep. There is no provioon in Income tax Act to charge dep on land and u cannot charge dep on land in income tax Act. Even if u charge the same it will be disallowed while calculating income under head business/profession.

The above provisions of IT Act has nothing to do with how u charge dep in accounts.

Thank You

CA PRIKSHIT GUPTA

CA PRIKSHIT GUPTA (Expert)
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20 March 2010 As per Sec. 32 building should be depreciated @10% on WDV. On Land there is no provision for depreciation.