Depn benefit in the hands of partner for owning a vehicle

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Student CA Final
40 Points Posted on 21 June 2011

Hi all,

My clients are getting Remuneration & interest & pofit from the partnersip firm.They also earn other income in the form consultancy fees.They have recently purchased a vehicle for personal use.My query is " Is depn on the vehicle is allowed to be deducted while calculating the net taxable income ffrom remuneration ,Interest and consultancy fees as profit is fully exempt....

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On 21 June 2011 at 16:37 Report
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B.Com CA Final CS
5270 Points Posted on 21 June 2011

i think in the hands of partner it will not be allowed...wait for experts..

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On 21 June 2011 at 16:46
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CA IN PRACTICE
16719 Points Posted on 21 June 2011

used for personal use- hence no depreciation allowed                      

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On 21 June 2011 at 17:59
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First remuneration and interest from the firm is taxable. S 28

Profit from firm is exempt from tax u/s 10(2A)

Consultancy fees is taxable under the head business. S 28.

Now depreciation on car.

Car if also used for business purpose, then proportion depreciation and expenses can be claimed as deduction from business income. S 38(2)

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On 21 June 2011 at 22:05

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