Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Depreciation

Saurabh Malpani (CA Final) (514 Points)

06 January 2012

suppose an immovable asset is kept as an investment.

Can we claim depreciation on it?

Reply with some case laws or accounting standard is available

Thanking you

Saurabh Malpani

Reply
Follow
Share

6 Replies

Anupam Bajaj (Student) (111 Points)
Replied 06 January 2012

saurabh, can u brief the situation......??

Upgrade to CAclubindia Pro. Subscribe Now!

Saurabh Malpani (CA Final) (514 Points)
Replied 06 January 2012

i have an immovable asset which i kept it as an investments now i want to depreciate that asset , can i depreciate it??

CA Abhirup Kar (CA) (92 Points)
Replied 06 January 2012

U hv to specifically say, wat immovable asset r u talking abut..

If it is a land, than i m afraid u can not do so. N for building, u can claim depn, bt aftr complyn certain process..

Saurabh Malpani (CA Final) (514 Points)
Replied 06 January 2012

its building

CA Abhirup Kar (CA) (92 Points)
Replied 06 January 2012

ok, let me tel u d procedure. U r showing d building as n investment, now first of all, u have to find out d purchase date and d actual cost of d building. As per explaination 5 to Sec 43(1), u have to calculate notional depn on such asset from the date of acquisition. its easy, take the cost of the building n provide depn for every past years notionlly on it from the date from whn u hv acquired the building. This will bring down the WDV of d building on wich u r eligable to claim depn.