Depreciation on mobile phone as business expense for self employed

A) No. the difference will not be allowed as business loss. Secondly its not called depreciation. Depreciation on such asset is just 15% as per IT act.

B) Depending upon the  the requirement of the assets in your business and its personal usage, assessing officer may share the expenses claimed under PGBP head. Claiming is one part while its justification is all together difficult part. 

Old one disposal is considered as sale of asset and new one is treated as newly acquired asset.
Old and new are not to be linked as far as costing is concerned in books.

Depreciation will be @ 15% as per Income Tax Act on such assets.

AO may not allow depreciation and Mobile bills payments to an extent at his discretion for personal use.

Same for Car , depreciation, interest EMI and car maintenance /fuel bills.

According to my Understanding.. If it is used for Business Purposes and Incorporated in the Balance Sheet as Asset...
you can claim Depreciation for the Same @ 15%..
as you purchase it Last Year.. You should have charged Depreciation in the previous year as well or Half Year Depreciation if used for less than 180 days in the last year (depending on date of purchase)...

For the Current Financial Year (Mar19-Apr20) you may charge 15% Dep of the Written Down Value in previous year...

After Writing Down the Asset for 2 years Dep..
if you sale the asset for 30000
you will have a Short Term Capital Loss of diff betwn Sale Proceed & Written down value of asset after 2 years...

Similar for the Car...

Also The Assessing officer if he desires can ask you for Explaination of Expenses Claimed.. and if he is not satisfied he may Partially allocate the expenditure for Business and Personal Purpose or disallow fully..

Originally posted by : Atif Khan
	. and if he is not satisfied he may Partially allocate the expenditure for Business and Personal Purpose or disallow fully..

Hi Mr Atif Khan.,

   Finally You came to Mr Dhirajlal Rambhia Sir view...

AO will disallow the same. He can't segregate the details for personal and Business. At the time of disallow Assessee will pay huge amount considering the actual amount.

So, First choice we give safer side to Assessee based on Future complaints...

Am I Right...?

In addition to my above reply, this is commonly found in proprietory business.

In the iTR itself it is advisable to self disallow a percentage of such expenditure including depreciation.

AO may increase little bit percentage and then from next year onwards it will work as a precedent and no more hassles thereafter.

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