Depreciation allowance

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JAYAKUMAR.M.G

JAYAKUMAR.M.G (Querist)

12 July 2012 Sir
Kindly clarify whether a partner can claim depreciation on motor car which is used for the business as an expense from the Working Partners salary.If allowable pls explain any conditions to be fullfilled
Thanks & Rgds

CA Lokesh Pokharna

CA Lokesh Pokharna (Expert)

12 July 2012 if dep. claimed in firm assessment than it can't claimed in personal account.

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JAYAKUMAR.M.G

JAYAKUMAR.M.G (Querist)

12 July 2012 Sir
Since the Motor car is a personal asset no depreciation claimed in firm's assessment .In that case whether the partner cn calim it?

CA Lokesh Pokharna

CA Lokesh Pokharna (Expert)

12 July 2012 motor ca can also be treated as a business assets instead of personal assets, provided it is in business use.....so you can claim in firms assessment....this will be a proper way

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JAYAKUMAR.M.G

JAYAKUMAR.M.G (Querist)

12 July 2012 Sir
The problem is that,since it is a personal asset how it can be accounted in firm,s business. Whether depreciation is accountable in firm's account without accounting the assetin the books of the firm. Kindly clarify
Thanks & Rgds

CA Lokesh Pokharna

CA Lokesh Pokharna (Expert)

13 July 2012 no if assets not accounted in firm's business than dep. also can't be claimed in firm's a/c...

Prakash Kochar

Prakash Kochar (Expert)

14 July 2012 Interest, Salary received from firm by partner is business income. Partner shall be entitled to claim deduction from salary, interest etc. in respect of any expenditure incurred to earn such income, under sect. 30 to 37.

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