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Depreciation in case of transfer of business

Others 740 views 2 replies

Gaurav Chamoli

Articled Trainee

52 Points Joined December 2012

What will be the effect of Depreciation in case of Transfer of Business from deceased Father to Son as per Income Tax Act ?

We are going to make 2 Balance Sheets.

Do we calculate Depreciation in the proportion of Number of Days or 50:50 or wholly in books of Father or wholly in books of Son?

Also let us know the accounting effect....

Replies (2)

CA Saroj Kumar

Keen to learn something new every moment

2588 Points Joined June 2010

IF both business is different from each other than no days used by each business shall be calculated and in the same proportion depreciation is to be claimed. If same business is being carried out then full depreciation u can claim in ur current business.