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Depreciation u/s 32

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18 September 2014 Kindly Please guide me on this matter.

Where a proprietorship is converted into partnership with effect from 01.07.2013 during the F.Y. 2013-14, in such a case who will get the benefit of depreciation under income tax act?
Whether the proprietor or the partnership firm?

18 September 2014 the depreciation shall be proportatinately divided on the basis of ownership i.e till the time it was held by prop and held by firm.

18 September 2014 But sir now the proprietorship is no longer in existence. If we claim depreciation in this year for 3 months than in next F.Y. there would arise a problem




18 September 2014 the adjustment shall be only for the fy 13-14 and from 14-15 full dep as applicable shall be chargeable.

18 September 2014 For FY 2013-14

the Firm will get the full depreciation on the value at which asset is transferred to it as the asset is being in use for more than 9 months.

Assuming it is not a building, the price at which asset was transferred shall be considered as full consideration and taxed as capital gains under section 43(5). The depreciation shall not be allowed to the proprietor in the year of sale.

19 September 2014 Tushar Sir, the asset would no longer would be with the proprietor, than what treatment to give in the next year of it's opening block of fixed assets??

19 September 2014 Dear Khyati,

I believe this query was closed!

Anyways, once the proprietor transfers the asset he wont be eligible to claim depreciation neither in the year of transfer nor afterwards.

The firm on the other hand will continue to get full claim of depreciation from the year of transfer itself.

19 September 2014 ok sir.. thankyou for your guidance




19 September 2014 you are welcome.......

19 September 2014 ok sir.. thankyou for your guidance

19 September 2014 @ nikhil till khyati does not get all ans of her q ur belief is not relevant as she is the querist.

khyati next year it will be shown in new onwers book i.e of firm and prop next year wont be eligible for dep.

19 September 2014 Tushar...propreitor wont be eligible for depreciation even in the year of sale :)






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