Depreciation under I T act- asset hire purchase basis

Prem Kumar (Articled student--Final)   (375 Points)

17 February 2009  

Hi......

Can any one let me know how to deal with the asset when it is purchase on hire purchase basis.

1. Can we deduct the interest on hire purchase as deduction

2. can we claim depreciation on the asset u/s 32 only on the cost of the asset

its urgent plz help me in this regard

thank you in advance