Tax depreciation on rental property

Depreciation can be claimed by person carrying on business. An individual purchasing a property and earning rental income cannot claim depreciation. However, they may claim deduction u/s 24 upto 30% from the rental income.

On rental income a standard deduction is allowable @ 30% u/s 24(a) of income tax act and no deprication is allowable on investment property to individual assessee.

Since your rental income is chargeable under the head "Income from house properties", as per sec 24(a) of the Income tax act you will be eligible for a standard deduction @ 30% on your total rent.

You will not be eligible to claim any depreciation on the said residential property.

How ever, in addition to the 30% of standard deduction mentioned above, you will be eligible to claim to interest on loan taken for construction and/or development of such property.

If such interest is paid to a non resident Indian, you have to deduct tax on such interest payment to get the interest on loan as a deduction.