Depreciation on self occupied house
This query is : Resolved
13 March 2024
Hello,
Assume a 4BHK house in an apartment complex has been bought in the FY 2021-22. It has become a self-occupied property starting from FY2022-23, where one of the rooms is being used purely for trading (business), rest for living.
a) Can depreciation at 5% be claimed here?
b) Assuming it can, will it be on the whole house or on proportionate basis (for one room)?
c) Assuming on proportionate basis, does this calculation make sense
Cost of house bought = 90L (say)
Room cost = 15L
5% depreciation for 1st year: 75000
Reduced tax liability = 22500 (30% slab)
This calculation is to just get a general sense.
Kindly help. Thanks.
Assume a 4BHK house in an apartment complex has been bought in the FY 2021-22. It has become a self-occupied property starting from FY2022-23, where one of the rooms is being used purely for trading (business), rest for living.
a) Can depreciation at 5% be claimed here?
b) Assuming it can, will it be on the whole house or on proportionate basis (for one room)?
c) Assuming on proportionate basis, does this calculation make sense
Cost of house bought = 90L (say)
Room cost = 15L
5% depreciation for 1st year: 75000
Reduced tax liability = 22500 (30% slab)
This calculation is to just get a general sense.
Kindly help. Thanks.
13 March 2024
a) As it's not capitalised as business asset depreciation can't be claimed.
13 March 2024
Pardon my ignorance but what does this exactly mean? Does this mean that depreciation should have started being claimed from the first year itself & it can't be done now? Thanks.
13 March 2024
No depreciation can be claimed it's self occupied house.
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