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
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
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??