Calculation of depreciation when a firm is converted into a

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.

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