Depriciation, Income Tax

[SWATANTRA GOEL]

1. Is a Lessee entitled to claim depreciation on the cost of building constructed by him for business-use in the space taken on long lease say on 9 years lease?

2. A Pvt Ltd company got land allotted for say 20 lacs, constructed a building costing 35 lacs, will it be entitled to claim depreciation on 55 lacs. I think yes because the total asset is now one.

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

1. You can claim depreciation;

2. For land there is no depreciation in my view. You can claim only on the cost of construction.