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sachin (student) (23 Points)

13 June 2018  
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?

 1 Replies

Siddharth Goel (Chartered Accountant) (3016 Points)
Replied 13 June 2018


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.

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