Depreciation Rate

Tax queries 4688 views 3 replies

What is the rate of Depreciation under Income Tax Act  for Transit mixer, (Cement mixer, Concerete mixer) if its let out on hire

Replies (3)

 

Originally posted by : SYED SHAHUL

What is the rate of Depreciation under Income Tax Act  for Transit mixer, (Cement mixer, Concerete mixer) if its let out on hire

 

Syed,

Sec. 32(1) read with Rule 5 states that the asset should actually be used for the purpose of the assessee's business or profession.

Since you have let out the assets, you cannot claim depreciation on them. ( Exception to the above are motor casr , buses used in the business of running them on hire)

As for the Dep. rates, you may treat the above assets under Plant & Machinery on which the rate is 15%

Hi Syed,

The rate of depreciation is 15% as P&M......

You need to assess if the taxability is as PGBP or IFOS. 

 

Under both heads depreciation is allowed.

Under PGBP, it is allowed u/s 32 and under IFOS is allowed u/s 57.

Rupesh ji,

1 Q from you, Whether Letting out of P& M is not a business and if we let out P&M , it is not for our business purpose.

Mr. Syed, In the case u can claim dep. on Mixer at 15% add additional dep. 20% if it is new in its 1st year.


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