My company bought a Car on 10 Oct 2012. But the user of car started using the Car only from 26 Oct 2012. Can you plzz tell me frm which date it is to be capitalised as it was ready to use on 10th but put to use on 26 Oct.
Plzz highlight any provisions/case law for the same if possible
Thanks in advance
Why are confused by Income tax laws
in companies act capitalisation should be done from the date of ready use to claim Dep under said act
in Income Tax act capitalisation can be done from the date of put to use in business to claim Dep under said act
As teh car is purchased is after Sept, so the depreciation claim under the I-T Act would be 50% of the applicable rate for Vehicles. Under the Co's Act, deprn can be claimed from the date the car was purchased and not from the date of use.
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