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State of Tamilnadu - Section

Section 6 in The Chennai City Tenants Protection Rules, 1970

6.

The allowance for depreciation of buildings under section 5 shall be calculated at the rates specified in the Schedule to these rules.The Schedule[See Rule 6]Standard Rates of Depreciation
  Type of buildings Rate of depreciation per annum
(1) Buildings built in lime or cement mortar and inwhich teak has been used throughout. 1 per cent
(2) Buildings built partly of brick-in-lime orcement mortar and partly of brick-in-mud and in which teak hasbeen used. 1 per cent
(3) Buildings built in brick-in-mud and in whichcountry wood has been used. 2 per cent
(4) Buildings which are inferior to those of type 3with brick-in-mud unplastered walls and mud floors and in whichcheap country wood has been used. 4 per cent
Notes. - (1) The depreciation shall be calculated for each year on the net value arrived at after deducting the amount of depreciation for the previous year.
(2)The amount of depreciation shall, in no case, be less than 10 per cent of the estimated present cost of the building.Illustrations:-
(a)For a building of type 1 aged only 2 years-the depreciation shall be 10 per cent, and not about 2 per cent, as calculated under the formula given in Note (3) below.
(b)For a building of type 1,15 years old, it is 13.99 per cent, as derived from the formula given under Note (3) below.
(3)The actual depreciation of a building aged in years is calculated by using the formula:-P = A(100-r)n/100When A - present capital cost of the building,r = % rate of depreciation per annum,n = age of the building (i.e. the number of years),p = the final depreciated value of the building.The amount of depreciation will be equal to ('A' 'P') subject to a minimum of 10 per cent of 'A'.