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Car depreciation ?

Shalini Agarwal (CEO) (79 Points)

20 September 2011  

Hi,

 

I have a new car purchased in April, 2011  - now I want to sell this car and buy a new better one. I am currently in 30% tax bracket, Pls. tell how depriciation could be availed for maximum tax benefits with negiligible loss while selling the existing car.

 

Thanks

 


 13 Replies

Mihir (Wealth Manager) (5288 Points)
Replied 20 September 2011

Depreciation cannot be availed if the car is for personal use.

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 20 September 2011

Originally posted by : Mihir

Depreciation cannot be availed if the car is for personal use.

ashish gupta ( student) (1917 Points)
Replied 20 September 2011

Mihir is right, no depreciation available on car used for personal purpose.

valji (Accounts manager-MBA) (2148 Points)
Replied 20 September 2011

agreeee with mihir

Ravindra kumar (student) (87 Points)
Replied 20 September 2011

"Agree with to all above"

Shalini Agarwal (CEO) (79 Points)
Replied 20 September 2011

I am using the car for business purpose as I am a professional and car is being used for doing business.

CA.CMA.Prasanna Ganapathy.R (ACA,Grad.CWA) (135 Points)
Replied 20 September 2011

if you are carrying on any business then only you can claim depreciation proportionately. by claiming it has been used for business.. otherwise you can't claim....  

1 Like

(Guest)

Shaliniji

I hope u have only one car in the business.

Purchase price of the old car                    10 L

Less : sale price of the old car                 ( 8 L)

Add : purchase price of the new car         15 L

Closing WDV                                                17 L

Less : Depreciation on 17 L @ 15%         

Opening WDV

Note : The above calculation is applicable if you purchase new car before 31st march. 

thanks

https://taxbykk.blogspot.com/

Shalini Agarwal (CEO) (79 Points)
Replied 20 September 2011

Originally posted by : kaushal (taxbykk)

Shaliniji

I hope u have only one car in the business.

Purchase price of the old car                    10 L

Less : sale price of the old car                 ( 8 L)

Add : purchase price of the new car         15 L

Closing WDV                                                17 L

Less : Depreciation on 17 L @ 15%         

Opening WDV

Note : The above calculation is applicable if you purchase new car before 31st march. 

thanks

https://taxbykk.blogspot.com/

Thanks for having my query answered :)

nupur (employee) (112 Points)
Replied 21 September 2011

Deprecation can be availed only when car is not used for personal purpose

ranganatha rs (account executive) (48 Points)
Replied 01 December 2011

Hi Sir I Have a hundai I20 Car what is percentage of Depreciation ? it is fully professional use

please let me know your feed back

 


(Guest)

As per income tax act 15% any brand car

ranganatha rs (account executive) (48 Points)
Replied 02 December 2011

Thank you so much for your right information sir.

 


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