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Gaurav Chamoli (Querist)
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26 June 2014 What will be the effect of Depreciation in case of Transfer of Business from deceased Father to Son as per Income Tax Act ( Succession on Death) ?

We are going to make 2 Balance Sheets.

Do we calculate Depreciation in the proportion of Number of Days of assets used or 50:50 or wholly in books of Father or wholly in books of Son?

Business was transferred on 17.01.2014. Will the Successor Son get Depreciation at half the depreciation rate or full rate owing to less than 180 days of use ?

Also let us know the accounting effect....

Nischit Sanghavi

Nischit Sanghavi (Expert)
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27 June 2014 Depreciation will be available at full rate. When business is transferred, the period of depreciation will be considered as of previous owner.

Depreciation will be calculated on the proportion of no. of days for which asset was held.

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Gaurav Chamoli

Gaurav Chamoli (Querist)
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27 June 2014 Sir have you considered that the succession is by death?

What wiil be the implication is the succession is not by death?

Nischit Sanghavi

Nischit Sanghavi (Expert)
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27 June 2014 There will not be any change because you are going to maintain 2 balance sheet.

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