Segaration of the value bet land & building & claiming the dep on building
hetalsangoi
(Querist) 09 December 2012
This query is : Resolved
How to calculate the Depreciation when property is purchased with land & building .As per income tax act ,Land is always subject to appreciation in the value term. Depreciation is required to claim only on the consideration paid for the purchase of building.
Please guide me how can I segarate the paid consideration into the consideration paid for land & building ?
I have the conveyance deed .while paying stamp duty there is a document for the value of building & open space. As per their calculation shown in deed ,amt for the valuation of the stamp duty act is lesser than what we have mentioned the consideration in the conveyance deed . is This base to take proponents of building & open space with the amount paid for consideration?
Raj Kumar Makkad
(Expert) 09 December 2012
What ever amount of building has been mentioned in the conveyance deed, is the base for claiming further depreciation over it.
hetalsangoi
(Querist) 09 December 2012
please elaborate more?
Raj Kumar Makkad
(Expert) 09 December 2012
As already told to you that the stamp papers were purchased separately for the building and the cost of building and open space was fixed separately so the value of the building can very well be obtained thereto.
