Depreciation on residential property used for business!

Tax (Student) (165 Points)

23 March 2017  

Facts of the case

Assesse constructed a building for residential purposes in the year 2004

Cost of Land - Rs. 2.5 lacs (Purchased 10 years earlier)

Cost of Construction of Building - Rs. 24 lacs

Assesse started business in the year of 2014

Assessee started using that residential property for the purposes for business.

He used that residential property as an office. 



How to claim depreciation on same?

Should the depreciation be claimed from year AY 15-16 or from the year of construction? 

At what rate should depreciation be claimed? 

Depreciation should be claimed on whole property or proportionately on only the part used for business?

Depreciation should be claimed on the composite value of Land & Building?