PURCHASE SHOP REGARDING

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This discussion clarifies depreciation rules for a land purchase made in 2020-21 with subsequent construction completed in December 2023. The key takeaway is that only the construction expenses (totaling 15 lacs) are eligible for depreciation, not the land value itself, as land is not depreciable under income tax law. The depreciation rate for the financial year 2023-2024 can be calculated based solely on the construction cost.

ABHI KUMAR

ABHI KUMAR (Querist)
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15 February 2024 PURCHASE LAND 2020-21 PURCHASE VALUE 35 LAC...

LAND RECONSTRUCATION COMPLETE DEC 2023 TOTAL CONSTRUCATION EXPENSES 15 LACS

THEN WAT IS DEPRCIATION RATE IN FIN YEAR 2023-2024
AND HOW TO CALCULATE DEPRICIATION ON THIS ASSET ON THE BASIS OF TOTAL VALUE 35+15 OR ONLY 15 LAC
PLZ REFER INCOME TAX SECTION ALSO
THANKS IN ADVANCE