Depreciation

This query is : Resolved

ajay saxena (Querist)
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16 October 2014 I purchased a laptop (online from US) for INR 61,000/- in April 2014. Have been using it for freelance and personal work. How and from when can i claim depreciation on the laptop. How to calculate the same.

CA Siddharth Mehra

CA Siddharth Mehra (Expert)
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17 October 2014 no, you cannot claim depreciation if it not used for business purpose.

ajay saxena

ajay saxena (Querist)
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17 October 2014 Hi Sidharth. Thanks for reply.
I use it for freelance work and will be reporting the income from freelance.
It's not a business but it's freelance architecture work.
Still I can't claim?

CA Siddharth Mehra

CA Siddharth Mehra (Expert)
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17 October 2014 it will depend on the nature of work comes in employment and you showing your income under the head salary, then you cant claim,
in other case if showing business income then you can claim.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 October 2014 Income from Freelance architecture work is a professional income depreciation can be claimed.

Prof. Bajaj

Prof. Bajaj (Expert)
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17 October 2014 I agree with Mr. Seetharaman.

Freelancing income can be shown as business income and thus depreciation can be claimed for laptop.

ajay saxena

ajay saxena (Querist)
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17 October 2014 Thanks all for help, still conflicting reviews. I'll try to provide more clarifications.
I fill ITR4, show income from salary and from freelance. Nature of business 0607, professionals. Show freelance income in P&L section, no account case.

1. I am planning to show the cost of the laptop in expenses, bought in FY 14-15. Can i do this?

2. If depreciation can be claimed, can it be claimed in this FY also, or from next FY as it was bought this year.

Thanks in advance.

CA Bajrang Jhawar

CA Bajrang Jhawar (Expert)
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17 October 2014 As per sec IT Act section it is mandatory to claim depreciation every year so you must claim dep from this year . Further you cannot show the laptop as expense you must show it under the head P&M and claim 60% dep which is as per the IT Act,please understand whatever you do as per the IT Act and you are not suppose use your discretion in that.

CA Bajrang Jhawar

CA Bajrang Jhawar (Expert)
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17 October 2014 As per sec IT Act it is mandatory to claim depreciation every year so you must claim dep. from this year . Further you cannot show the laptop as expense you must show it under the head P&M and claim 60% dep on WDV which is as per the IT Act,please understand whatever you do as per the IT Act and you are not suppose use your discretion in that.

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ajay saxena

ajay saxena (Querist)
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17 October 2014 Thanks Rahul andall others for the info.

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