Depreciation against lease hold land

Dear all,

 

Please clarify me, How to calculate depreciation against lease hold land..

 

for.ex. land lease - Rs. 2,00,000,00/-,   for 50 years lease.

How much amount shown on P&L As depreciation...

Replies (3)

my opinion:

first of all, depreciation  won't come. However, if any contructions are made, for that structure depreciation can be claimed.

anyway, senior members'  posts are cordially awaited.

AS per GAAPs Lease hold lands Can be amortised for use full life of lease period so land can be amortised over 50 years on stright line method

remember as 19 is not applicable for land.. and there are two types of land free hold and leasehold.. for freehold land no need to amortised and for lease hold hand should be amortised over a period of life of agreement on SLM basis..

in your case , 2 crs land should be amortised in 50 years..

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