Regarding Hotel property capitalise in Books for depreciation

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This discussion clarifies how to capitalise a hotel building for depreciation purposes in your business accounts. It confirms that you can capitalise the property using its valuation, even if the valuation date is in the future, by adjusting the Written Down Value (WDV) to the current financial year. The consensus is to depreciate the building annually from its ready date (2015) until March 31, 2024, and then use that WDV for capitalisation and depreciation claims in FY 2024-25, provided the building is added to the business from April 1st, 2024.

Jaswinder singh

Jaswinder singh (Querist)
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15 October 2025 Respected Colleagues,
A person running restaurant business and now wants to capitalise hotel building in books (Property valuation done by income tax valuer dated 14.10.2025)
my ques is, whether we are able to capitalise in books in FY 2024-25 because property valuation Dt. 14.10.2025 and secondly, if hotel building ready in 2015, how we capitalise in books with actual cost less depreciation till 31.03.2024 in order to claim depreciation in FY 2024-25?

Please guide

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 October 2025 To enable depreciation claims for FY 2024-25 use the written down value (WDV) of the building as of the date being introduced in business.

Jaswinder singh

Jaswinder singh (Querist)
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15 October 2025 Ok sir, it means from 2015, for WDV we depreciate the building every year till 31.03.2024, then Is WDV as on 31.03.2024 capitalise in books?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 October 2025 Yes; provided the building is added in business from 1st April. 2024; otherwise adjust WDV to that date.

Jaswinder singh

Jaswinder singh (Querist)
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15 October 2025 Ok sir thanks a lot

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 October 2025 You are welcome.

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