Disallowing depreciation for personal use

hello...

Generally, when the motor car is used for office as well as personal puprose, depreciation is calculated at the normal rate first irrespective of its use. 

However, at the time of income tax computation, 50% is dis-allowed. 

Assuming the car has been purchased on or after 2nd October (i.e. used for less than 182 days),

i dnt knw how did u arriveat closing WDV figure

According to me, it should be 208462+910835-210000 = 909297

Depreciation on Motor Car = 909297*.15*.5

                                           =68197

Further, since out of this, 50 % of depreciation is personal in nature, then 68197*.5 = rs. 34098 should be dis-allowed

But, it is to be noted from the block, the whole Rs. 68197 should be deducted.

If the tax audit is applicable in the case of the assessee, this personal expenses of Rs. 34098 should be reported in Clause 17(ii) of Form 3CD.

Apart from this depreciation, 50% of motor car expenses (Fuel Cost and Repairs) should also be dis-allowed as being personal in nature.

I think depreciation should be disallowed only to the extent of 50%depn  of the addition to the gross block.
Sonam have you practically done lyk dis in any case??

Thank you Sonam...sorry for the error in the closing WDV...

Why can't we take 50% of only the addition to the gross block instead of taking 50% of the closing WDV?

As per Section 43(6) 'Written down value', in the case of assets acquired in the previous year, the actual cost to the assessee shall be added to the block of assests

Hie khushboo........yes, u r right....i have practically done this type of tax computation. The only different is that we have considered 20% (Based on the management judgement) of total motor car expenses , instead of 50% as given in this case, as being personal in nature.

Originally posted by : Nishtha Narielwala
	Thank you Sonam...sorry for the error in the closing WDV... Why can't we take 50% of only the addition to the gross block instead of taking 50% of the closing WDV?

Sry Nishtha, but i could nt understand what are u asking

thanks dear!

@ Sonam : I had disallowed depre for personal use at 50% of 910835/-(Value of addition to the gross block) so is it right or should I disallow at 50% of 909207/-(closing WDV of the block)?

Hope my query is more clear now !

Kindly help !

Nishtha...you should dis-allow 50% of closing WDV i.e. 909207.

thank you Sonam ! :)