Depreciation on assets used for income

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ketan (Querist)

20 December 2011 I want to know that if a person is earning a income from other sources such as commission or such and for earning that income he is using a laptop or other asset. he is using that asset purely for earning that income. now will the depreciation of that will be admissible???

And also if a person has an Asset in his own name but claims to use it in his business than what???

and finally if an assessee has a tution class which he conduct at home and considers as income from other sources and purchases a laptop purely for help in tutoring as to make papers and research etc. so what about depreciation then???

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

20 December 2011 Commission Income can not be said to be IFOS
as normally it is taxed under the head of Business & Profession Income.
.
If the said person likes to claim depreciation he has to show his income under the head of PGBP.
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Asset may be in the name of the proprietor. For claiming the depreciation also it is said that asset must be owned by the assessee. The important consideration required for claiming Depreciation is -whether the asset has been actually used or kept ready for the purpose of business of the assessee.
If the asset is not used in the business, depreciation claim will not sustain.
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Sir, is running tuition class. This is the most lucrative business and fits into the head of PGBP making thereby eligible to him for claiming Depreciation.
If shows IFOS he can not claim Depreciation.

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