Depreciation on car held in personal name

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2012 I have a car in personal name for past 3 years. Also I have a proprietor business account. Now for the past 3 years I have not been claiming depreciation on my firm balance sheet as I was employed and was drawing salary in my personal account.I have left the job 6 months back and now am concentrating on my advisory business. Can I claim depreciation on my car. If so how should I account it. In my balance sheet or my prop. firm's balance sheet.Also should I claim full 15% depreceation or 50% of 15% .Please advise

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

02 July 2012 1. You should introduce the car in business as capital contribution.
2. Record the car at the Fair Market Value. This can be obtained from the insurance policy.
3. Now you can claim depreciation on the value of the car from the current year.
4. Depreciation will be admissible @ 15% if the car is put to use for more than 180 days.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Rubal Singhal

Ravi Varshney

Shivchandra Jakhotia

DHANASHRI KARMARKAR

Sneh Choraria

Subscribe Now

Depreciation on car held in personal name

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

Senior Executive

CA Final

GST CONSULTANCY

Accountant

GST CONSULTANT