Income tax

yes he is eligible to claim depreciation and the opening wdv should be 10lacs

(correct me if i m incorrect)

Plz justify if u have some case law in hand.Becoz am getting number of different answers from freinds and CA's for this doubt.
 

sorry i didnt notice that

In my view, the value should be Rs.10,00,000/-. In his personal balance sheet, he might show this as Motor Car Account Dr. To Capital Account. Accordingly the entry in his business books can be passed. I derived this conclusion from the point as the figure in case of cash gift is also shown as a part of ur balance sheet i.e., cash / bank addition, then similarly why cann't it be addition of a fixed asset. But, he should maintain the receipt of the car purchased and the gift deed for further assessment procedures...

yes cost will be your actual cost  of car as explanation explanation 5 to sec 43(1) is specific about personal aseets bought to bussiness but dat is only about building so other assets will be at actul cost.

HI,

    According to Explanation 2 to sec 43 (1) , Where an assest is acquired by the assessse by way of gift or inheritance, the actual cost to the assessee shal be the actual cost to the previous owner as reduced the depreciation actually allowed on  the asset and the amount of depreciation that would have been allowable to the assesse .

In your case you got a Car as a gift, so the actual cost for you is RS 10Lac which the cost of the previous owner.

 

Originally posted by : CA Vishal kapoor
	HI,     According to Explanation 2 to sec 43 (1) , Where an assest is acquired by the assessse by way of gift or inheritance, the actual cost to the assessee shal be the actual cost to the previous owner as reduced the depreciation actually allowed on  the asset and the amount of depreciation that would have been allowable to the assesse . In your case you got a Car as a gift, so the actual cost for you is10Lac which the cost of the previous owner.

Agreed