Depreciation for garden

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Arvind Bharadwaj (Querist)
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02 September 2011 one of my client has classified garden as capital assets. how should i treat it in income tax for depreciation.

U S Sharma

U S Sharma (Expert)
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02 September 2011 vacant lands and parks/ gardens are not eligible for depriciation, however if the garden is used with annexed buildings for business purpose then it would accounted with the annexed building only as per the slab of building used (residencial 5%, others 10%)

Arvind Bharadwaj

Arvind Bharadwaj (Querist)
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02 September 2011 Pls sate it with any case laws or section

U S Sharma

U S Sharma (Expert)
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02 September 2011 http://www.fastfacts.co.in/resources/DepIncomeTax.rtf

visit the link, here the assets begin with buildings only.

U S Sharma

U S Sharma (Expert)
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02 September 2011 usually land property does not invite depriciation, but when the land is converted to commercial buildings, the land value is vested in building, and depriciation gets available for set off against business income from said property.

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