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Personal computer as business expense in ITR

pavan (Engineer) (38 Points)

17 January 2012

I am salaried person and i do Stocks Trading(both Short Term and Long Term). So can i show my personal computer as Bussiness expense(here i am treating Trading as Bussiness).

Thanks in advance..!!

pavan

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10 Replies

KARANDEEP,CA,B.Com,CS FNL (JOB) (457 Points)
Replied 17 January 2012

Hello Pavan ji,

You can show your computer as an assets of your business and you should introduce the capital in kind(means computer) in the business to show its an assets.

Thanks & Regards

Karandeep

Narendra choudhary (mumbai) (109 Points)
Replied 17 January 2012

No, you can't show computer as expenses because it is an asset.

You show this in assets and claim 60% Depreciation as Expenses.

pavan (Engineer) (38 Points)
Replied 17 January 2012

Thanks Narendra/Karandeep for you valuable comments..

can you please also give ur comments on below Quires..

I have Bought my laptop in Sep 2010, but i am now Showing this as bussiness asset in 2011-12 IT returns.. is it Possible..?
.What Proof i need to Submit..? Is Laptop purchase Bill enough..?
Claiming 60 % depreciation of Bussiness asset i.e ex. If laptop cost is 1 lakh then 60,000 i can show as Bussiness expense right..?
. Where i need to Show Bussiness expense. Under capital gains..? i.e

Capital Gains = - 60,000

And i can set off above Bussiness expense against my Annual Income right..?

I am newbiw to corporate world.. So Hanging out with so many Quires in my Mind :)

-pavan.

CA Sumiit B Nagpal (Business) (1077 Points)
Replied 17 January 2012

Dear Pavan

Yes u can show it as an asset and laptop bill will be enough evidence. and you can claim depriciation on it i.e. rs. 60000 under section 32 as a business expense and not as a capital gain deduction.

pavan (Engineer) (38 Points)
Replied 17 January 2012

Hi sumeet,

Thanks for your comment.

can you please commetn wheather i can set off Bussiness expense for Anual Income..?

-pavan

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 17 January 2012

Originally posted by : pavan
	HI I am salaried person and i do Stocks Trading(both Short Term and Long Term). So can i show my personal computer as Bussiness expense(here i am treating Trading as Bussiness). Thanks in advance..!! pavan

to show the computer in business as asset, you need to have a valid business which has all features of business,

share trading done by individuals is capital gain or speculation income, but its not a pure business income, at some places share trading done at F&O is to be "treated as business income"

personal effects used for such share trading can not be allowed for depriciation purpose.

CA Sumiit B Nagpal (Business) (1077 Points)
Replied 18 January 2012

Originally posted by : U S Sharma
	Originally posted by : pavan HI I am salaried person and i do Stocks Trading(both Short Term and Long Term). So can i show my personal computer as Bussiness expense(here i am treating Trading as Bussiness). Thanks in advance..!! pavan to show the computer in business as asset, you need to have a valid business which has all features of business, share trading done by individuals is capital gain or speculation income, but its not a pure business income, at some places share trading done at F&O is to be "treated as business income" personal effects used for such share trading can not be allowed for depriciation purpose.

Agreed, So if you are in business of share traing then u can claim depriciation as a business expense

Ram Chandra (Finance Officer) (29 Points)
Replied 18 January 2012

If you are trading in share and duch kind of thing than you can show computer in your balance sheet under fixed assets and expenses related to computer may be your business expenses and also depreciation 60% (more than 180 days) would be claimed for expenses

pavan (Engineer) (38 Points)
Replied 18 January 2012

HI all,

have doubt.. can you please help me ..

As i am a salarid person and i do part time Trading, so my shares Trading consider as Bussiness..?As unless and Until it is treated as Bussiness i don't think ,i can keep Personal computer as bussiness asset and claim 60 % Depreciasion.

Thanks in advance..!

-Pavan