Building which are mainly used for residential purposes except hotels and boarding houses can be charged a 5% depreciation rate under the Income Tax Act.
Buildings – 10% Depreciation Rate
All types of buildings which are not used for residential purposes can be charged with a 10% depreciation rate. A building would be deemed to be a building used mainly for residential purposes, if the built-up floor area used for residential purposes is not less than 66.66%.
CAclubindia
