21 December 2009
can full year depreciation be claimed on a motor car purchased on 30/9 of a Financial Year?? can AO allow only 1/2 year depreciation under the plea that if its purchased on 30/9, it cant be put to use for 180 days, & so only 7-1/2 year depreciation is allowed??
21 December 2009
If the underlying asset is put to use more than 180 days full depreciation is to be claimed. If you cannot establish that the asset is put into the use for more than 180 days only 50% of depreciation is available,
21 December 2009
The date of payment of vehicle tax or the date of obtaining vehicle number whichever is later may be considered as the date from which the vehicle is put to use. From that date if the vehicle is put into use for a period of less than 180 days, then AO can restrict depreciation allowance to 1/2 of the normal rate.
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