Depreciation on Motor Car

This query is : Resolved

Rupesh Jain (Querist)
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15 July 2011 One of Our Client Purchase A New Car of Rs. 45/- Lakhs on 29th September 2010.
The RTO Registration was done on 10th Oct. 2010.

So Whether the Assessee is eligible for claim Depreciation on motor car @ 15% as the car purchased before 30th Sept.
or
He can get only dep. @ 7.5% as the RTO Reg. done on 10/10/10.

So please reply.

CA Navin Jain

CA Navin Jain (Expert)
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15 July 2011 DEPRECIATION IS CALCULATED ON THE DATE OF PUT OF USE,

IF CAR IS USE FROM 29.09.10, THEN U CAN CLAIM THE DEP FROM 29.09.10

Message likes : 1 times

taxindiaconnect

taxindiaconnect (Expert)
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15 July 2011 The rule is if the assets is put to use for more then 182 days in a year 100% depreciation shall be allowed. An assets put to use on before 2nd October will be eligible for 100% depreciation. In your case you can calim depreciation of 100% which is 15% on motor cars.