Last updated: March 30th, 2020 1:01 PM

Depreciation Rate for Building

Depreciation allowance is provided under the Income Tax Act for building. The word building has however not been defined under the Income Tax Act and must be construed based on the ordinary grammatical sense, together with the available judicial interpretations. According to the Oxford English Dictionary, the word 'building' means "a structure with a roof and walls, such as a house or factory". In this article, we look at the depreciation rate for buildings.

Depreciation for Building

Under the Income Tax Act, a building is a structure with a roof and walls, such as a house or factory. However, based on various case laws and notifications, the following items can also be classified under buildings for the purpose of charging depreciation allowance under the Income Tax Act.

1. Road laid within factory premises as links or providing an approach to the buildings.
2. Fencing or walls.
3. Process warehouses.
4. Driveways and compound walls.
5. Landscaping.
6. Toll road constructed by an assessee.
7. Hoarding