Partition
SHRIPAL PANDEY
(Querist) 06 May 2014
This query is : Resolved
How to valuate an old property about 5 decades old or how to calculate depreciation of a house or building ?
Devajyoti Barman
(Expert) 06 May 2014
In partition suit, the court fees is of fixed amount irrespective of value of suit property in most states like WB.
Lawyer SALEEMA KABEER
(Expert) 06 May 2014
The query is relating to the calculation of value of a building after deducting depreciation.
Therefore, my answer is, for the assessment of building value, we have to consider the value of site also.
As per the suggestion of our Hon'ble Supreme Court, the best method to assess the land/site area is that the area of land to be calculated at the rate of price paid within a reasonable time in bonafide transactions of purchase of the lands acquired or the lands adjacent to the land and possessing similar advantages.
Further, the age of the building, quality and value of construction materials, amenities thereon and area of constructed portions has to be assessed by a qualified Engineer, preferably PWD Engineer, by making physical inspection of the building after deducting the depreciation as per existing Govt. norms.
The value assessed for the site + the building cost assessed by the Engineer is the total value of the property.
Sankaranarayanan
(Expert) 06 May 2014
yes the query is related to depreciation . first the land and building values are assessed by the chartered engineers and then calculated with the appropriate rate prescribed in the income tax act
Dr J C Vashista
(Expert) 07 May 2014
Incomplete information such as,
1. what is the nature of property?,
2.where it is locate?
3. what is the purpose of valuation?
4. why it is to be depreciated?
Contact/engage a local lawyer, if it is not an academic query.
R.V.RAO
(Expert) 08 May 2014
agree with lawyer saleema kabeer.
R.V.RAO
(Expert) 08 May 2014
depreciation needs to be calculated from the date of completion of construction and handing over by the builder .
as you say it is a 5 decades old building,definitely the asset was already depreciated 1oo% by now and even more , applying present IT rates of depr.@5% for mainly residential buildings and @10% for other bidgs.
any way income tax depreciation rates applicable 50 years back needs to be referred for calculation of dep. purpose.
if interested in old depr. rates, consult your auditor.
Otherwise, take it that today's book value of the 50 year old building may be taken as "0" .
as explained.
T. Kalaiselvan, Advocate
(Expert) 08 May 2014
If the evaluation is required for the purpose of paying court fee for partition suit, it is fixed court fee in almost all the states across the country, elaborate details are not required as rendered by straining themselves by some experts.
Dr J C Vashista
(Expert) 09 May 2014
Ad-valorum court fees (for the purpose of valuation of the suit for partition) and stamp duty differ from state to state, check it with local lawyer.
