Company purchased a building. Agreement for purchase does not include a separate value for Building and for land on which it is constructed. Only one combined value is mentioned in the agreement. Now my query is that,for income tax purpose, on what amount i should claim a depreciation? on total agreement value or on only the value on building and not land? if only on value on building, then how will i bifurcate the value of land and building? is there any case law for the same? 
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depreciation on land and building
Replies (5)
as to the best of my knowledge, depreciation on land is not allowed.
as far as bifurcation is concerned, FMV as on date may be taken as a base (as it is a newly purchased buildind)
HI..
As per decision in CIT vs Rajesh Exports Ltd 9 SOT 28(Bangalore) In case of a composit agreement for pur of land & building where seperate distinction can't be made about the price of each, dep is admissible on whole consideration.
Regards,
Thank you Mr. Abhinav
But i am unable to find that case law. Can you please send me a link to that case law? or send me copy of the same on nayan_chuttar @ hotmail.com
We have purchased a Land in Mumbai so tell me how much % of Depreciation we have calculated ?
no dep on land as per income tax.....
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