Depreciation

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sachin

student

23 Points Joined March 2016

if income from tea is bifurcated between agriculture and business income(60:40), then whether while computing PGBP proportionate depreciation of agriculture is allowed? Or not?

Replies (1)

Siddharth Goel

Chartered Accountant

3031 Points Joined June 2016

Hi,

In case of Tea business, for Income tax purposes, Depreciation of maximum 40% is allowed in case of any assets. There is no restriction on depreciation allowable even if the exempt portion of the income is 60%.

Therefore, whole depreciation calculated on the assets is allowed as deduction and there is non eed to proportionate or bifurcate the depreciation into taxable and exempt.