Depreciation Allowance in Case of Immovable Property

The cost of immovable property or a structural improvement of immovable property shall not include the cost of land. It means that depreciation allowance is restricted upto the cost of immovable property excluding cost of land..

Depreciation Allowance in Case of Asset Leased to Another Person

Any asset owned by a leasing company or an investment bank or a modaraba or a scheduled bank or a development finance institution and leased to another person is treated as used in the leasing company, bank, etc. for its own business, an allowance for depreciation shall be allowed on such asset.

Cost of Immovable Property Exceeds the Original

Where the amount received on the disposal of the immovable Dfa Ho property exceeds the original cost of the property, the excess shall be treated as the cost of the property.