In the rates of depreciation chart as per IT Rules, under BUILDING: 1) Its given that on "Building which are used mainly for residential purposes except hotels & boarding houses can claim depr. at 5 percent.
So does that mean a Business owner can claim depreciation on his residential property(specifically on ground flr house, and where the 1st flr is used as office premises & claims depr. thereon. Can he debit the same to P & L Account.
12 May 2009
Yes building has been shown as fixed asset( as residential property). But pls any more answers, as i hav got 2 contradictory views. Hi Nitin,if we cannot claim depr., then wat for is the rate @ 5% is given for buildings on residential property.
12 May 2009
for the matter of the allowance/disallowance, if the company giving the perks of the residence facility to it's employee/directors, it will be allowed as a expenditure, otherwise that will be disallowed. and the rate is given for the purpose of the capital gain tax calculation at the time of sale, in that regards no question of the allowance/disallowance arises.
CAclubindia
