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Depreciation on fixed asset purchased in the name of the director

Tax queries 787 views 2 replies

A Company has 2 directors. A director has purchased a Car in the name of himself and loan is also sanctioned in the name of the director. Repayments of the loan is done through the Bank account of another director.

The query is:

1. Can the company show the Car purchased as a Fixed Asset and the loan in its own books and claim depreciation?

2. The Director has claimed the TCS on Car in his individual IT Return

Replies (2)
No. The basic principle of ownership will not comply for claiming depreciation.
As per section 32 of the Income Tax Act, 1961, depreciation is allowed on tangible assets and intangible assets owned, wholly or partly, by the assesse and used for the purposes of business or profession.


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