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Deductions for profit from business

436 views 5 replies

mad_tax_boy

Others

28 Points Joined January 2015

Hi,

I would like to know if the below scenario is eligible for deductions under business income-

Scenario :

I would purchase a computer, UPS, other accessories and broadband(pre-paid, 1 year plan) during Feb-March 2015 for a certain business that I would be starting.

Would it be possible for me claim deductions for the purchase of these assests in the financial year 2015-2016, if the tax is filed under the head of business income (Assuming, I have not claimed this in FY 2014-1015) ?

Will I be able to claim the full amount paid for these assess as deductions or a part of it?

Thanks for the help.

Replies (5)

Guest

You can't claim purchase price as deduction. you can claim depreciation for computer in fy 2014-15. The rate would be 30% i.e half of 60% as the asset would be used for less than 6 months.

mad_tax_boy

Others

28 Points Joined January 2015

Thanks.

As I plan to start the business in fy 2015-16, I will be claiming the deductions for the fy 2015-16. Would the depreciation remain the same in this case?

Also, would there be any change in the deductions w.r.t fy 2015-16, if i purchase the assets in april 2015?