Depreciation on office

This query is : Resolved

R.C.Jain and Associates (Querist)
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19 December 2014 Dear All,
With regards to depreciation related to office used for business, it seems that depreciation is to be charged. If not the same shall be deemed to be charged and at the time of sale it would be treated as short term capital gain only.
Kindly confirm the above contention is correct and whether the above situation can be changed if we show as investment and not fixed assets?
Thanks in advance.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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20 December 2014 Under income tax act depreciation are not allowed for the period before the date of transfer and sales consideration is reduced from the opening WDV. deprecition are allowed on balance WDV only if still have positive balances.

Under companies act depreciation allowed on no of days utilized, therefore depreciation will allowed.

Rupesh Jain

Rupesh Jain (Expert)
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20 December 2014 you can claim the depreciation on the office equipment and then you make sale then its taxable under block if your depreciation block value is less then the sales proceeds and its taxable under the STCG.

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