Depreciation u/s 32
This query is : Resolved
khyati shah
(Querist)
18 September 2014
Kindly Please guide me on this matter.
Where a proprietorship is converted into partnership with effect from 01.07.2013 during the F.Y. 2013-14, in such a case who will get the benefit of depreciation under income tax act?
Whether the proprietor or the partnership firm?
Where a proprietorship is converted into partnership with effect from 01.07.2013 during the F.Y. 2013-14, in such a case who will get the benefit of depreciation under income tax act?
Whether the proprietor or the partnership firm?
18 September 2014
the depreciation shall be proportatinately divided on the basis of ownership i.e till the time it was held by prop and held by firm.
khyati shah
(Querist)
18 September 2014
But sir now the proprietorship is no longer in existence. If we claim depreciation in this year for 3 months than in next F.Y. there would arise a problem
18 September 2014
the adjustment shall be only for the fy 13-14 and from 14-15 full dep as applicable shall be chargeable.
Nikhil Kaushik
(Expert)
18 September 2014
For FY 2013-14
the Firm will get the full depreciation on the value at which asset is transferred to it as the asset is being in use for more than 9 months.
Assuming it is not a building, the price at which asset was transferred shall be considered as full consideration and taxed as capital gains under section 43(5). The depreciation shall not be allowed to the proprietor in the year of sale.
the Firm will get the full depreciation on the value at which asset is transferred to it as the asset is being in use for more than 9 months.
Assuming it is not a building, the price at which asset was transferred shall be considered as full consideration and taxed as capital gains under section 43(5). The depreciation shall not be allowed to the proprietor in the year of sale.
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khyati shah
(Querist)
19 September 2014
Tushar Sir, the asset would no longer would be with the proprietor, than what treatment to give in the next year of it's opening block of fixed assets??
Nikhil Kaushik
(Expert)
19 September 2014
Dear Khyati,
I believe this query was closed!
Anyways, once the proprietor transfers the asset he wont be eligible to claim depreciation neither in the year of transfer nor afterwards.
The firm on the other hand will continue to get full claim of depreciation from the year of transfer itself.
I believe this query was closed!
Anyways, once the proprietor transfers the asset he wont be eligible to claim depreciation neither in the year of transfer nor afterwards.
The firm on the other hand will continue to get full claim of depreciation from the year of transfer itself.
khyati shah
(Querist)
19 September 2014
ok sir.. thankyou for your guidance
Nikhil Kaushik
(Expert)
19 September 2014
you are welcome.......
khyati shah
(Querist)
19 September 2014
ok sir.. thankyou for your guidance
19 September 2014
@ nikhil till khyati does not get all ans of her q ur belief is not relevant as she is the querist.
khyati next year it will be shown in new onwers book i.e of firm and prop next year wont be eligible for dep.
khyati next year it will be shown in new onwers book i.e of firm and prop next year wont be eligible for dep.
Nikhil Kaushik
(Expert)
19 September 2014
Tushar...propreitor wont be eligible for depreciation even in the year of sale :)
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