17 June 2009
Dear Sweta Take it for Granted u have purchased Telecommunication License for 10 years for Rs.10 Lacs, u will get Rs.1 lac as deduction per year (cost of License amortise over no. of years for which lisence valid) now say after 4 year u sold out some portion of license for Rs.3 Lac, therefore now deduction for 5th year onward shall be cost after 4 year Rs.6 Lac Less Sold out portion viz.Rs.3 Lac ----------- Balance Rs.3 Lac No. of Year remain 6 Deduction per year Rs.0.5 Lac (Rs.3Lacs/6 year)
CAclubindia
