Depriciation on factory building

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This discussion clarifies the rules around depreciation for factory and office buildings. It confirms that charging depreciation is mandatory. When selling such a building, capital gains are calculated based on the depreciated value at the time of sale, not the original cost. The thread also addresses whether the tax department can issue notices for not claiming depreciation and confirms that you can start claiming depreciation in the current year even if it was missed in previous years.

PARDEEP KAPIL

PARDEEP KAPIL (Querist)

12 July 2024 Dear sirs : Kindly guide me on this matter.. (1) Is it mandatary to charge depriciation on Building used as office or as a factory. (2) At the time of sales of such building, what will be calculation for long term capital gains (a) will it be cost of possession and date of possession (b) depriciated value as on date of sales...(3) Can Income tax department send notice for NOT CHRAGING OF DEPRICIAION (by not chraging depriciation, assessee will be paying more Income tax) (4) Assessee has not chraged depriciation on building for many years, so can he start charging depriciation from current year. Kind Regards