Calculation of depreciation when a firm is converted into a

Others 3324 views 6 replies

What is the calculation od depreciation when a 9 months old firm is converted into a company in the last 3 months. Can the entire depreciation be claimed in the firm as the assets are more than 6 months old and can 90 days depreciation be claimed in company. Is there anybody who can help me with this.

 

Thanks,

Kamala 

Replies (6)

Calculate depreciation as if no conversion has taken place.Now distribute the depreciation between the firm and company in the ratio of no. of days for which block was held by each of them .In this case 9 months for firm and 3 months for company.

ok now should th depreciation be claimed in firm returns for 9 months and 3 months. My other doubt is when the assets are transfered to company will it be considered as so it is sold and then will the assets be sold in firm and the block becomes nil?

Ya the firm will claim depreciation for 9 months in return.Transfer of asset from a partnership  firm to company is exempt from capital gain tax subject to the fulfillment of conditions specified in 47 (xiii).The block of the firm will obviously become NIL

AGREE WITH CA RICHA BOTHRA

very well and correctly explained by Richa...

What about Computax..... there is no option to distribute the depreciation in ratio.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
16 June 2026
Sr. Associate / Assistant Manager | TAS / FDD

Boutique Investment Bank & Transaction Advisory Firm

Gurgaon

CA

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details