With the explosive increase in the data traffic of wireless communication systems and the scarcity of spectrum, terahertz (THz) frequency band is predicted as a hopeful contender to shore up ultra- broadband for the forthcoming beyond fifth generation (5G) communication system. THz frequency band is a bridge between millimeter wave (mmWave) and optical frequency bands. The contribution of this paper is to carry out an in-depth study of the THz channel impairments using mathematical models to evaluate the requirements for designing indoor THz communication systems at 300GHz. Atmospheric absorption loss, diffraction loss and free space path loss were investigated and modeled. Finally, we discuss several potential application scenarios of THz and the essential technical challenges that will be encountered in the future THz communications. Finally, the article finds that propagating in the THz spectrum is strongly dependent on antenna gain.