Depreciation rate in case of death of proprietor

This query is : Resolved

Chintan Shah (Querist)
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08 August 2011 1)The proprietor has died on 30th september 2010 and his son becomes proprietor as on 1/10/2010.

2) in both period turnover exceeds Rs. 60 Lacs.

so i wont to know the taxation provisions applicable to the particular case.

I also want to know what will be th edepreciation rate applicable for the new machine acquired in first period? i.e. 01/04 to 30/09. = 15 or 7.5%

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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08 August 2011 Two returns, and two tax audit reports will be filed for the respective period.
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The son can sign the documents and returns as legal representative.
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Ist Half year Return will be in connection with the deceased father,

In the case of succession the depreciation has to be claimed as if the succession has not took place.

In my view Depreciation to be claimed
in respect of the new asset acquired by father at full rate, and it will be apportioned according to the no of days in use.

Depreciation on assets acquired by the son thus can be claimed by the son only.

Depreciation on the assets carried by the father at WDV to be apportioned on the basis of No. of days the assets were used by the predecessor and by the successor.