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Depreciation on Brand value

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Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2010 One of Our group company has a owned a Brand, but the valuation of the same is not done till date.

Now the group co will transfer the brand in name of our company.We would value the brand by Prof valuer and recognised the Brand in our books.

Can we claim depreciation on the above brand value under Income tax act if the same is transfered from our group co?

What is the depreciation we can claim if our group co was already claiming the depreciation before the transfer?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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10 October 2010 Brand name, as per my understanding, is a "commercial right" which comes under "intangible assets" and hence can be depreciated,for income tax purpose, @ 25% vide Part-B of appendix-1 of rule 5 of the Income tax Rules,1962.

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