Depreciation
sachin (student) (23 Points)
13 June 2018
Siddharth Goel
(Chartered Accountant)
(3026 Points)
Replied 13 June 2018
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.