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Deductions for profit from business

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mad_tax_boy

Others

29 Points Posted on 19 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

Posted on 19 January 2015

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

29 Points Posted on 19 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?