14 March 2013
Dear all, My query is Mr. A's Fixed Asset is Car & his Flat & he is partner in a Firm (all partner are family member) & he use his car for firm but car booked in his Personal a/c not shown in firm. please suggest can he claim depreciation on his car in personal a/c? & also suggest about depreciation on his flat. Thanks in Advance.
17 March 2013
thanks sir. but he not receive any remuneration or interest from firm, only he got profit share in firm, which is not taxable in his individual return. his source of income is rent receive from his many flats. so please suggest can he reduce his income by depreciation or not?
18 March 2013
He can not reduce the depreciation from his income since share of profit is exempt from tax. (expenses incurred for exempted income will not be allowed).
17 July 2013
Yes he can claim the depreciation and all expenses in the firm by way of an agreement with the firm. In the agreement it has to be mentioned that the Car No...... registered in the name is to be used for business purpose and all expenses of the car is to be born by the company and the car is to be transferred in the name of the company by crediting the capital account of the partner and debiting car a/c otherwise not
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