Notional depreciation and conversion of sop into profession

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Susmitha Vandanapu (Querist)

12 May 2016 Doctor Rajesh purchased a house property on 01-12-2010 for Rs.10 Lakhs. Till 01-05-2013, the same was self occupied s a residence. On this date, the said building was brought into use for the purpose of his medical profession. What would be the depreciation allowable for The assessment year 2014 – 15, after considering notional depreciation, assuming that he owns no other buildings and the rate of depreciation is 10%. Will the answer be different if the house property had been gifted by him by his father who had purchased the same on 01-05-2009 for Rs.9,00,000/-

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Thank you for your time and consideration

CA SUNIL K GARG

CA SUNIL K GARG (Expert)

13 May 2016 If you convert personal property to business use, the basis of depreciation will be the lower of:

the fair market value at the time of the conversion, or
the cost plus any additions or improvements, and minus any deducted or losses, up to the time of the conversion.
If you acquire property by gift, your depreciable basis is same as the donor's basis at the time of the gift

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