A new car is purchased on 15.03.2016. Whether depreciation computed for one month or for only 15 Days. Assessee is a partnership Firm
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Depreciation computation
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Depreciation will be calculated at the half of applied rate as car used for less than 180 days for business
As per Income Tax, 1961 depreciation needs to be calculated at half rate since the asset was put to use for less than 180 days.
Motor car is depreciated @ 15% as per Income Tax act. However, if asset is used for less than 180 days during previous year then depreciation shall be halved. There is no concept of proportionate depreciation in Income tax act.
if car is put to used within 31st mar then half of 15% dep
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