we hv block of furniture which we want to write off in 9 yrs. whereas its life is 10 yrs. generally.
my Q. is can we claim whole depreciation in the 9th year insted of gradually write-off upto 10 years.
such depreciation not want to be claim as loss by taking value of block 0.
if any provisions in income tax then must mention section.
There is only option in Income tax act that Dep on furniture can be claimed @ 10% of value of block on WDV basis. you have to claim depreciation until the value of block ceased to exist or sale consideration exceeds the value of block.... if furniture life is 9 year and no further addition will take place in next 9 years than you can show Capital gain or loss in 9th year.
DEAR DEEPANSHU
YOU CAN
1. CHARGE DEPRICIATION FOR 9 YEARS
2. IN THE NINTH YEAR DISPOSE OFF THE ASSET AND CLAIM SHORT TERM CAPITAL LOSS IF POSSIBLE OTHERWISE U LL BE TAXED FOR LONG TERM CAPITAL GAIN
dear deepanshu in my opinion u should purchase a chair or table.it is therefore sothat your block would be continued and u can claim depreciation on wdv of block. and u can write off your existing furniture. it would be beneficial to you
CAclubindia
