Depreciation

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suppose an immovable asset is kept as an investment.

Can we claim depreciation on it?

Reply with some case laws or accounting standard is available

Thanking you

Saurabh Malpani

Replies (6)
saurabh, can u brief the situation......??

i have an immovable asset which i kept it as an investments now i want to depreciate that asset , can i depreciate it??

U hv to specifically say, wat immovable asset r u talking abut..

If it is a land, than i m afraid u can not do so. N for building, u can claim depn, bt aftr complyn certain process.. 

its building

ok, let me tel u d procedure. U r showing d building as n investment, now first of all, u have to find out d purchase date and d actual cost of d building. As per explaination 5 to Sec 43(1), u have to calculate notional depn on such asset from the date of acquisition. its easy, take the cost of the building n provide depn for every past years notionlly on it from the date from whn u hv acquired the building. This will bring down the WDV of d building on wich u r eligable to claim depn.

thanks abhirup


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